GOME probe: Ex-chairman Huang's wife steps down

HONG KONG, Dec 26 (Reuters) - GOME Electrical Appliances (0493.HK), the electronics retailer once dubbed China's "Best Buy", has suspended former chairman Huang Guangyu and his wife from their executive duties amid a police probe into the once high-flying tycoon's financial activities.

China's largest electronics retailer said on Friday that Huang's spouse, Du Juan, resigned from her director's post because of her relationship with Huang, who, according to the official Xinhua News Agency, is the target of an official investigation into stock market manipulation.

GOME in turn relieved Huang and Du from their duties this week, the firm said in a stock exchange filing.

Du is the latest executive casualty of a widening police dragnet into alleged stock price-rigging. GOME has said its chief financial officer, Zhou Yafei, was also under scrutiny in connection with Huang's case, though GOME stresses the investigations did not involve the firm or its assets.

Calls to GOME's Hong Kong and Beijing offices went unanswered on Friday. Calls to executive vice president Wang Junzhou, who GOME re-appointed Executive Director as of Dec. 23, also went unanswered.

"Ms. Du considered it in the interests of the company and the shareholders of the company that she resigns as a director," GOME said in its statement. "The company has terminated her service contract with the group."

For full statement, please click here 1224432.pdf

Ultra-wealthy Chinese entrepreneurs have fallen foul of the law in past years, as the local economy boomed but regulators struggled to keep pace with the Communist country's rapidly expanding market reforms.

State-owned Xinhua said last month that Huang was suspected of manipulating trading in the shares of Sanlian Commercial Co (600898.SS) and Beijing Centergate Technologies Co 000931.SZ, citing the China Securities Regulatory Commission.

Local media also reported Huang, who topped Hurun's annual China "rich list" in 2008, had been detained for questioning.

GOME said on Friday it has tried repeatedly to contact Huang, its controlling shareholder, after news of the investigation surfaced last month, with no success.

In the interim, GOME Chief Executive Chen Xiao had been appointed acting chairman. Gome has said its business and operations would not be affected by the investigation.

Trading in GOME shares, halted since Nov. 24, will remain suspended until further notice. (Reporting by Edwin Chan, Editing by Ian Geoghegan)