Executives Leave Chinese Company Amid Scrutiny – Aries Poon and Sai Man

From the Wall Street Journal:

Shanghai Electric Group Co. said its chairman and two directors have resigned while under investigation in China, and the company has been in contact with the Hong Kong stock exchange regarding a resumption in trading of its shares.

Shanghai Electric’s stock in Hong Kong has been suspended from trading since Aug. 14, when the Chinese industrial-equipment maker said its chairman, Wang Chengming, and two other directors were detained on suspicion of violating certain Communist Party rules and regulations.

The Shanghai municipal government appointed its deputy secretary-general, Xu Jianguo, Friday to succeed Mr. Wang as chairman of state-owned parent company Shanghai Electric (Group) Corp. The government also nominated Mr. Xu to succeed Mr. Wang as chairman of the listed company. That appointment will need shareholder approval. The government owns 51.6% of the Hong Kong-listed unit.[Full Text and Subscribers Only]

August 21, 2006, 8:21 PM
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Categories: Economy