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Chair of Shanghai's top real estate company resigns amid graft probe
7/11/2006 17:13

The chairman of Shanghai's top real estate company has resigned in the midst of a government investigation of the company's involvement in the Shanghai pension fund scandal.

The announcement of Wang's resignation was posted on the website of the Shanghai Stock Exchange Tuesday.

Wang Zheng, chairman of the board of Shanghai-listed New Huangpu Real Estate, also quit his job as president of the supervisory committee of China Huawen Investment, which controls New Huangpu Real Estate, according to the company announcement.

Neither the company nor the bourse gave any explanation for Wang's resignation. New Huangpu Real Estate said that vice chairman Lu Quefei is acting as interim chairman. China Huawen Investment has proposed Wang Weixu as the company's new representative on the board of New Huangpu Real Estate.

China Huawen Investment spent 425 million yuan (about 53 million U.S. dollars) to become the largest shareholder in New Huangpu Real Estate in 2005. It has an 18.18 percent stake in the real estate company, which is a key player in the city's famous Bund waterfront property project.

The New Huangpu Group, parent company of New Huangpu Real Estate, has already been fingered for its role in the funds scandal and its director Wu Minglie has been fired and placed under investigation.

The biggest corruption scandal in Shanghai in decades, the pension fund case involves the misappropriation of billions of yuan in city pension funds.

Xinhua News