GUANGZHOU - Li Qihong, the celebrated mayor of Zhongshan in South China's Guangdong province, has been placed under investigation for alleged insider trading, local authorities confirmed on Friday.

Li was taken away for questioning by officials of the Central Commission for Discipline Inspection of the Communist Party of China at the end of May, Chen Genkai, Party secretary of Zhongshan, said.

"Li is suspected to have been involved in insider dealing in the stock market and abused her power for personal gains in the city's real estate industry," Chen said.