Brilliance chairman resigns
The chairman of minibus-maker Brilliance China Automotive Holdings has stepped down after it was rumoured he was investigated over alleged asset stripping.
Yang Rong resigned from the board after the company's controlling shareholder, Chinese Financial Education Development Foundation, said he 'failed to better reflect the interests of the foundation', according to an analyst who attended a teleconference chaired by vice-chairman Wu Xiaoan yesterday.
Mr Wu succeeded Mr Yang as chairman, the analyst said. However, Mr Yang will remain on the board as director.
The company gave no further details on the resignation.
The legitimacy of the foundation's ownership of Brilliance China was reported to have been challenged by the state.
The Finance Ministry has reportedly ordered the foundation to transfer its 39.45 per cent stake in Brilliance China to an asset management company owned by the Ministry and the Communist Party.
The reports suggested that Mr Yang failed to carry out the order.
However, Brilliance China rejected reports yesterday that Mr Yang was under investigation for irregularities.
The announcement was prompted by a flood of speculation about the company's future, including possible boardroom turmoil, a takeover by the state and alleged margin calls, after the stock plunged 16.13 per cent on Monday.
The stock rebounded 9.71 per cent to close at HK$1.13 yesterday, following a much milder recovery on Tuesday.