CRCC slides 4pc after death-jump of boss

Business | Kevin Xu 19 Aug 2020

Shares of China Railway Construction Corporation (1186) fell 4.24 percent to HK$6.55 after the state-owned infrastructure builder said its chairman, Chen Fenjian, died on Sunday at the age of 58.

Chen had served as chairman, executive director, secretary to the party committee and chairman of the nomination committee of CRCC since 2018. CRCC said operations are continuing as normal.

Chen took his own life by jumping from a building, mainland media Caixin reported, citing sources from industry insiders.

China's public security authority is investigating Chen's death, according to state-run tabloid Global Times, citing sources.

Chen's death came as the second inspection group of China's top state assets regulator - the State-owned Assets Supervision and Administration Commission - launched an inspection of CRCC in June.

The deadline for the inspection group to receive petitions and complaints from the public on CRCC management's misconduct was August 15, one day before Chen's death, the commission said on its website.

The company will appoint a suitable candidate as soon as it is reasonably practicable, CRCC said.

CRCC, one of the world's largest integrated construction groups, ranked 54th in the Fortune Global 500 in 2020. Its business covers project contracting, survey design consultation, industrial manufacturing, real-estate development, logistics, trading in goods and materials, and capital operations.

Meanwhile, China Merchants Bank (3968) said it received a resignation letter from chairman Li Jianhong, who resigned as chairman, non-executive director, chairman of the strategy committee and member of the nomination committee due to a change of work arrangement. Li confirmed that he has no disagreement with the board, according to a stock exchange filing.

Li had served as a non-executive director of the bank since July 2014 and the chairman since August 2014.

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