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The municipal government of Changzhou city, in East China's Jiangsu Province, said on Sunday that it is conducting an investigation on media reports alleging the owner of Changzhou Huali Hydraulic Lubrication Equipment Co committed suicide recently following regulatory talks.

The local discipline inspection and supervision department is reviewing the case and will earnestly handle it in compliance with laws and regulations, according to a statement seen on the WeChat account of the Changzhou Radio & Television Station.

On Saturday, an article posted on WeChat account of Changzhou Huali alleged that Cheng Yong, president of Changzhou Huali Hydraulic Lubrication Equipment Co, was "forced to admit" that he accepted bribes worth 8 million yuan ($1.1 million) and "he had to prove his innocence by committing suicide," the Beijing News reported on Sunday.

The News reported the article originally posted on Changzhou Huali's WeChat account was deleted on Sunday night.

According to an overview on the company's website, Changzhou Huali was established in 1984 and is a professional lubrication equipment manufacturer in the original mechanical industry. The company's fixed assets are worth over 200 million yuan, employing more than 600 workers.

Cheng was the legal representative of Changzhou Huali. He was the largest shareholder of the company, accounting for a total of 29.76 percent stake in the firm, the Beijing News reported, citing public data.