SHOUGANG's new Hong Kong chief says the arrest of his predecessor Zhou Beifang on alleged corruption is not connected to the group's purchase of an iron mine in Peru. 'Mr Zhou did not get involved in the mine purchase as he was then in Hong Kong for share-listing work,' said Zhang Yanlin. Zhou was arrested in Beijing on February 20. His father, Zhou Guanwu, resigned as Shougang's chairman the day before the arrest. In an interview with the state-run Xinhua (the New China News Agency), Mr Zhang said Shougang's five listed companies on the Hong Kong stock exchange would seek to protect the interests of their shareholders. Mr Zhang, chairman of Shougang Holdings (HK) and Shougang Concord International Enterprises, said Zhou's arrest would not affect the business operations of the Shougang (Capital Iron and Steel) General subsidiaries in Hong Kong. Mr Zhang arrived in Hong Kong on Wednesday. 'I have met the board of directors of Shougang's subsidiaries listed on the Hong Kong exchange in the past few days and share with them a common wish for achieving better economic performance and results for the sake of the shareholders,' Mr Zhang said. Shougang Concord made a profit of $50 million in 1993 and its profit for last year was expected to be higher, he claimed. Shougang Concord managing director Li Geng downplayed rumours that Shougang subsidiaries failed to meet stock exchange listing procedure requirements. He said 'the listing of subsidiaries on the Hong Kong stock exchange was approved by departments of the Chinese Government'. He added that Shougang's Hong Kong subsidiaries had completed all required procedures since the creation of the China Securities Supervision and Administration Commission.