Shares of China’s largest private shipbuilder rebounded modestly on Friday, but were still well below their earlier levels, in resumed trading after the company confirmed its chairman was assisting in an unspecified government investigation.
In a clarification announcement prior to the trading resumption, Yangzijiang Shipbuilding (Holdings) Ltd. said Ren Yuanlin, its executive chairman, was “currently assisting in a confidential investigation carried out by certain PRC governmental authorities,” and was granted a leave of absence from the company starting Aug. 9. During Ren’s absence, his duties will be assumed by his son Ren Letian, who is also the company’s chief executive officer.
Yangzijiang added that based on its own inquiries, it did not believe that Ren was the actual subject of the investigation, and said its business and operations “are unaffected by the investigation and Mr. Ren Yuanlin’s leave of absence.”
The full original article can be found at caixinglobal.com