Shanghai Electric Group yesterday named a new chairman and said
it will conduct a review of its assets in a bid to pull itself out
of the doldrums following the detention of three high-ranking
The company, the mainland's biggest power equipment
manufacturer, announced that Xu Jianguo would replace Wang
Chengming as chairman.
Wang was detained for questioning last week on suspicion of
"seriously violating" Communist Party rules and regulations.
Company President Huang Dinan said yesterday that Wang had
already resigned for "personal reasons," and that Xu had been
elected as his successor at a board meeting on Friday.
The firm has been mired in scandal since three of its board
members were detained amid corruption allegations, with the firm's
Hong Kong-traded shares being suspended several times due to the
However, Huang stressed yesterday that the Wang incident
involved personal misconduct, had nothing to do with the company
and would have no impact on Shanghai Electric's operations.
In a bid to restore investor confidence, Huang said that the
first task of the new management would be to review the current
position of the company's assets.
Huang said that the company was working with the industry
regulator to ensure the timely disclosure of details of the
incident to shareholders, and expressed his hope that trading could
soon be resumed in the company's shares.
Shanghai Electric recorded a 1.17 billion yuan (US$146 million)
profit in the first six months of 2006, a year-on-year rise of 42
percent. Its revenue grew 29.6 percent year-on-year to 21.2 billion
yuan (US$2.65 million).
(China Daily August 22, 2006)