Minsheng stock tumbles after president resigns

China Minsheng Bank’s shares dropped yesterday as the president of the country’s largest private lender resigned on Saturday amid media reports that he had been taken away to assist  mainland anti-graft investigators.

Separately, Bank of Beijing said in a filing last night a board member had been taken away for investigation into a serious breach of discipline.

Minsheng  shares fell  10.5 per cent to  a  low of HK$8.46, before cutting their losses to close down 3.07 per cent at HK$9.16. In Shanghai, the stock slid 3.2 per cent to  9.17 yuan (HK$11.50).

“The long-term impact towards the stock was unquantifiable since there was little clarity whether the Chinese authorities will prosecute Mao [Xiaofeng]  and how Anbang  will run the operation of the Chinese lender,” said Ben Kwong Man-bun,  a director of broker KGI Asia.

Shi Yuzhu,  the chairman of Giant Interactive,  a Chinese game developer and operator,  warned that the new president should be competent and capable of running the bank’s operations as the former president lacked relevant skills. Shi, a  major shareholder of Minsheng Bank, did not name the former head.

Mao has been taken in for questioning  as part of a corruption investigation into Ling Jihua,  an aide to former president Hu Jintao,  Caixin reported.