HONG KONG China Resources (Holdings) Co Ltd CHRESR.UL has appointed a new chairman with immediate effect, replacing Song Lin who is being investigated by Chinese authorities, the firm said in a statement on Wednesday.
Fu Yuning, a former executive chairman of China Merchants Group, would take over from Song, China Resources said in a statement on its website. China Merchants Group is the parent of Chinese ports operator China Merchants Holdings International Co Ltd (0144.HK).
The move to appoint a new chairman comes after the shares of several Hong Kong-listed units under parent group China Resources Holdings came under heavy selling pressure following news of Song's probe.
While Song hasn't been charged or convicted of any specific crime, the swift management reshuffle suggests the probe into Song might be complex and drag on for some time.
The Central Commission for Discipline Inspection last week said it was investigating Song for "serious discipline and law violations." The official Xinhua news agency reported the investigation was part of an intensifying nationwide crackdown on graft.
China Resources (Holdings) is a state-owned conglomerate whose Hong Kong-listed units include China Resources Enterprise Ltd (0291.HK), China Resources Power Holdings Co Ltd (0836.HK), China Resources Land Ltd (1109.HK), China Resources Cement Holdings Ltd (1313.HK), and China Resources Gas Group Ltd (1193.HK).
China Merchants Group confirmed on its website on Wednesday that Fu had a new appointment and would no longer serve as chairman.
(Reporting by Donny Kwok and Joy Leung; Editing by James Pomfret and Christopher Cushing)