A total of 84.7 million shares held by the biggest shareholder of Chinese textile maker Huafang Co were frozen by Chinese courts shortly after the company's IPO on Monday.

The shares are held by Huacheng Investment Management Co, which owes money to the Baosteel Group. Shares held by Huacheng in other textile firms have also been frozen.

Huacheng Investment has issued a statement saying it will not settle its debts using Haufang assets or capital. Huafang Co is now under investigation by the China Securities Regulatory Commission to establish whether it broke disclosure laws.