China High Speed launches legal action over fund misappropriation of 6.6 billion yuan

China High Speed Transmission Equipment (0658) announced that its subsidiaries filed a writ of summons in Hong Kong’s High Court on March 31 over the misappropriation of  6.64 billion yuan (HK$7.12 billion), according to a company statement.

The lawsuit targets former executive director Fang Jian, Fullshare (0607) and its wholly-owned subsidiary Five Seasons XVI Limited, Fullshare chairman and executive director Ji Changqun, as well as 16 counterparties to commodity trading agreements and 10 Fullshare personnel accused of improper involvement in the subsidiaries’ administration, finance, and contract approvals.

China High Speed Transmission Equipment chairman Hu Jichun said the board is taking the matter seriously and has taken decisive steps to protect the group’s interests and fulfill its obligations to shareholders, vowing to rectify any misconduct that undermines corporate governance and shareholder value.

Its shares rose 2.27 percent to HK$0.90 in recent trading.

STAFF REPORTER