The suspension in trading has been put in place as concerns about the company’s finances grow.
FrieslandCampina, faces losing the $30 million (€27.3m) in share capital it invested in the company in 2015.
The world’s sixth largest dairy processor – according to Reuters – will also be fretting over the $700m (€637m) it paid for 50% of Huishan Dairy’s Xiushui plant in the city of Shenyang.
The dairy company said that Bank of China’s Macau branch had requested it repay the principal of a $50m (€45.5m) loan dated 28 April 2014, plus $937,363 (€853,000) interest accrued.
Huishan Dairy hit the headlines last year when it sold and leased back part of its herd, but its most recent troubles have laid bare the risks of excess leverage and financial engineering in unexpected quarters of corporate China.
Champ Harvest own 70.8% of the company, with Yang Kai, chairman of Huishan holding a majority shareholding in that company having pledged nearly all of the shares against the loans. If there is a default, banks could dump the shares on the market creating a downward spiral in share prices.
Shares in China’s largest dairy company crash by 85%