HONG KONG Nov 26 China Rongsheng Heavy
Industries Group, the country's largest private
shipbuilder, said its chairman had stepped down just three
months after the company posted its sharpest fall in half-year
Zhang Zhirong quit to devote more time to his personal
interests and will be replaced by the company's chief executive
officer, Chen Qiang, effective immediately, the company said on
Monday in a statement to the Hong Kong stock exchange.
Listed in November 2010, Rongsheng was hit by an insider
dealing scandal involving a firm owned by Zhang ahead of the
$15.1 billion bid for Canadian oil firm Nexen Inc by
China offshore oil and gas producer CNOOC.
Rongsheng said earlier this month that investment firm Well
Advantage, controlled by Zhang, had agreed to pay $14 million as
part of a settlement deal with the U.S. Securities and Exchange
It added that Zhang was not named as a defendant and Well
Advantage had not admitted the allegations.
The SEC had filed a complaint in a U.S. court in July
against the company controlled by Zhang and other traders,
accusing them of making more than $13 million from insider
trading ahead of the bid.
In August, Rongsheng posted an 82 percent drop in half-year
profit on a dearth of new orders and warned economic
uncertainties would continue to weigh on the global shipping
Shares of Rongsheng, which has a market value of $1.4
billion, have fallen 30 percent so far this year.
Zhang Zhirong has also resigned as chairman of Glorious
Property Holdings Ltd, the property developer said, as
part of a series of executive changes at the company.
As part of the changes at China Rongsheng, the company said
that Zhang De Huang was retiring and had resigned as an
executive director and as vice chairman of the board.