Reports of probe not true, says Maoye boss
Huang Maoru, the chairman of Maoye International Holdings, says reports that he has been under investigation by mainland authorities are untrue and his company has applied to resume trading.
Shares in the Shenzhen-based department store operator were suspended on December 16 after Chinese media reported that Huang and his younger brother were implicated in the criminal investigations involving Wong Kwong-yu, the former chairman of Gome Electrical Appliances Holding, and former Shenzhen mayor Xu Zongheng.
But in a filing made to the Hong Kong stock exchange yesterday, Maoye's board said Huang had confirmed to them that the allegations were not accurate and he intended to resume his duties as chairman and chief executive.
Maoye has applied to the exchange to resume trading today.
The statement also said that owing to the seriousness of allegations made against Huang, a special committee had been set up during his absence, but there was no indication that his temporary absence had caused any material damage to the company's financial and operational condition.
The announcement came after a filing by Chengshang Group to the Shanghai Stock Exchange on Monday evening claiming it had received a notice from Shenzhen Maoye Shangsha, a wholly owned subsidiary of Maoye, that Huang had returned to work and resumed his position as chairman and chief executive of Maoye.
Maoye is the majority shareholder of Chengshang.
On Monday, Maoye-linked shares soared as speculation over Huang's whereabouts continued, with Chengshang closing 8.17 per cent higher in Shanghai.
But yesterday, those shares fell. Chengshang closed 3.09 per cent lower, while Shenyang Commercial City A shares dropped 4.02 per cent in Shanghai and Shenzhen International Enterprises A shares finished with a loss of 4.51 per cent on the Shenzhen market.
Trading had closed on both exchanges before Maoye's filing with the Hong Kong exchange about Huang's return to work.
Maoye could not be reached for comment.
Wong was detained by the Beijing Security Bureau in November last year for 'economic crimes' related to insider trading and share manipulation.
Mainland media reports say prosecutors will charge Wong with corruption and insider trading and sentence him to more than 10 years in jail.
Wong's arrest triggered the detention of six Guangdong senior government officials as part of an anti-corruption drive.
Xu, who was detained in June, remains in shuanggui, a form of discipline under which the Communist Party detains officials under investigation until they are sentenced.
