Temasek Holdings, the Singapore state investment company, on Friday faced the threat of further losses on its $1.9bn investment in Shin Corp, which it bought in January from the family of Thaksin Shinawatra, the Thai prime minister who was overthrown in a coup this week.

For a second day in a row, the share price of Shin Corp and its affiliates fell sharply as the Bangkok stock market reacted to reports that the new Thai government would launch a probe into alleged corruption involving Mr Thaksin and his family, including the tax-free sale of Shin Corp.