Adidas stock shook by reports of Chinese investigation

Adidas (ETR:ADS) shares shook 4% lower after reports that it had launched an investigation into corruption allegations in China.

The German sportswear giant on Monday received a letter from an anonymous whistleblower, which was briefly posted on a Chinese social media platform, according to a report by the FT

The letter, purportedly written by "employees from Adidas China," accuses senior staff of embezzling millions of euros.

The whistleblower's allegations include claims that staff received kickbacks from external service providers and that one senior manager received millions in cash and real estate.

Adidas is said to be ‘intensively’ investigating the matter together with external legal counsel.

Reuters, in its reporting, published comments from Adidas stating:  “[it] takes allegations of possible compliance violations very seriously and is clearly committed to complying with legal and internal regulations and ethical standards in all markets where we operate.”

In Germany, Adidas shares were down 2.85% closing at €218.50, having traded as low as €215 earlier today.