The Ontario Securities Commission extended a cease trade order Wednesday against Chinese shoe manufacturer Zungui Haixi Corp. (TSXV:ZUN) until the end of its investigation into the company.

The regulator extended the trading ban after no one from the company appeared before the commission to oppose the order.

The OSC originally stopped trading in the shares on the TSX Venture Exchange in September after Ernst & Young LLP suspended an audit of Zungui and advised the company’s audit committee that an independent investigation of financial results was warranted.

Commission staff have accused Zungui’s chief executive Yanda Cai and chairman Fengyi Cai of failing to co-operate with the company’s audit committee and special committee.

Yanda Cai and Fengyi Cai have also been accused of obstructing an independent investigation by the special committee and failing to co-operate with the commission.

The allegations, which will be dealt with at a hearing on Nov. 23, have not been proven.

Fengyi Cai owns or controls a 56.8 per cent stake in Zungui. Yanda Cai and Fengyi Cai live in China, while Fengyi Cai also maintains a residence in Hong Kong.

The independent directors of the Toronto-listed company resigned in protest earlier this year, along with the firm’s chief financial officer, after they told the regulator they weren’t assured of funding or co-operation for an internal investigation.

The troubles come in the wake of allegations about financial irregularities against other companies that operate in China but trade on Canadian stock markets, including tree plantation operator Sino-Forest (TSX:TRE).

Zungui Haixi raised $39.8 million in its initial public offering in December 2009 on the TSX Venture Exchange.