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Board member takes reins of Zhongguancun

By Bao Wanxian (China Daily)
Updated: 2008-12-01 15:09

Shenzhen-listed company Zhongguancun Monday appointed its board member Wei Qiuli to take charge of the board's routine work as Xu Zhongmin, chairman of Zhongguancun, being investigated in alleged irregularities in corporate asset restructuring that could involve one of China's richest men Huang Guangyu.

Related readings:  Retail tycoon embroiled in irregularities  CSRC: Gome chairman under investigation for alleged irregular trading  Appliance chain Gome names acting chairman amid police probe  New chairman appointed in home appliance company

In another appointment, Zhou Ning, vice president of Zhongguancun, will manage the company's daily operations, according to the company's statement to the Shenzhen Stock Exchange.

The statement also said that so far, the effect of the rumor involving the alleged asset restructuring irregularities on the company's business operation was not clear.

A major domestic stock news website, www.cnstock.com, also reported Monday that after Huang, chairman of Gome Electrical Appliances Holding Ltd, was detained by police under investigation for "certain economic crimes", Huang's brother, Huang Junqin and chairman of Towercrest Group, is also being investigated in connection with his brother's case last Friday. Beijing police has confirmed it Monday, according to the report.

Trading in Zhongguancun shares on the Shenzhen Stock Exchange have been suspended since last Monday and resumed Monday. The stock dropped by 10 percent, the daily limit, once trading started.