China Huarong shares halted as chairman investigated for suspected graft (updated)

XinKong International Capital Holdings

18/04/2018 06:19

* Huarong owns 36 pct of CEFC unit that is buying Rosneft
stake
    * Trade in two Huarong units also suspended

 (Adds details of suspension and its CEFC Hainan stake)
    HONG KONG/BEIJING, April 18 (Reuters) - Shares of China
Huarong Asset Management Co Ltd  2799.HK  were suspended from
trade on Wednesday after Beijing said it was investigating the
firm's chairman for suspected graft. 
    The Central Commission for Discipline Inspection said on
Tuesday it is investigating Lai Xiaomin for suspected "serious
discipline violations", a euphemism for graft, the latest in a
string of probes into high-profile financial executives.
 urn:newsml:reuters.com:*:nL3N1RU4Y7
    State-controlled Huarong hit the headlines this year after
building up a 36 percent stake in a key unit of embattled
private energy company CEFC China Energy. The unit, CEFC Hainan
International, is acquiring a $9.1 billion stake in Russia's
Rosneft.  urn:newsml:reuters.com:*:nL4N1QR3O2 
    Shares of Huarong, which have a market value of HK$124
billion ($15.8 billion), were halted pending a statement, it
said in a filing. The company did not respond to a request for
comment when contacted by Reuters.
    Trade in shares of two of its units, Huarong Investment
Stock Corp Ltd  2277.HK  and Huarong International Financial
Holdings Ltd  0993.HK , was also suspended. 
    Reuters, Chinese and international media reported in March
that Ye Jianming, the chairman and founder of privately owned
CEFC, had been investigated for suspected economic crimes. Ye's
current whereabouts are unclear.  urn:newsml:reuters.com:*:nL4N1QJ1YU  
    
 ($1 = 7.8499 Hong Kong dollars)

 (Reporting by Donny Kwok; Additional reporting by Chen Aizhu
and Zhang Shu in Beijing; Editing by Edwina Gibbs)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))