A man is believed to have shot dead his business partner over a financial dispute before committing suicide in China's private economy hub of Wenzhou in Zhejiang province on Sunday morning.

Local police have released a statement claiming a 49-year-old resident of the Lucheng district surnamed Lin is believed to have shot his business partner. He was found dead close to the scene a short time later.

The 48-year-old victim was identified by his surname Nan. Police said the two men operated a shoe factory together in Lucheng and had some financial disputes that could not be solved through negotiation.

According to a statement issued by the Ouhai district police bureau, the incident happened at the Dongmenqiao area near the Wenzhou Zoo in the city's Ouhai district at 6:47am.

Police said Nan was knocked down by a black car and then shot.

An online picture shows the victim lying on the ground with bare feet and with blood all over his face and left arm.

Although first aid was administered, police said, Nan later died in hospital from his injuries.

Local police tracked down the suspect after receiving reports from witnesses.

Lin was found dead at the hill road near the scene of the crime.

Police said a gun was found near his body.

A Xinhua News Agency report said Lin committed suicide.

Police said the incident is still under investigation.

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