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Yang Luyu, the head of Jinan in Shandong province. Photo: SCMP Pictures

Mayor of major eastern Chinese city placed under investigation for graft month after being named in Hong Kong lawsuit

Yang Luyu, who heads Jinan in Shandong province, has been accused in a writ of conspiring to steal assets of a cement business

The mayor of a major city in east China is under investigation for graft, the national anti-corruption agency has revealed, shortly after he was named in a lawsuit in a Hong Kong court.

Yang Luyu, the head of Jinan in Shandong province, was suspected of graft, state news agency Xinhua reported on Wednesday, citing the Central Commission for Discipline Inspection. He is also the city’s Communist Party deputy secretary.

Yang was named in writ filed with a Hong Kong court last month. Two companies – China Pioneer Cement (Hong Kong) and Shandong Shanshui Cement Group – allege that Yang and his deputy mayor, Su Shuwei, conspired with former company directors to install “a so-called working group” at their Jinan plant on December 7 last year.

The goal of the alleged conspiracy was to take control of company assets, business and staff.

The ex-directors were named as Zhang Caikui and his son Zhang Bin.

The plaintiffs are subsidiaries of Hong Kong-listed China Shanshui Cement Group.

Yang, 59 and a Shandong native, worked his way up government construction agencies to his posting in Jinan as deputy mayor in 2003, and was made mayor in 2012.

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