China Everbright Holdings, one of the mainland's leading investment companies, yesterday confirmed the departure of its chairman Zhu Xiaohua and the appointment of People's Bank of China deputy governor Liu Mingkang to replace him.
The news followed several days of speculation that Mr Zhu, a protege of Premier Zhu Rongji and one of the most prominent 'red chip' bosses based in Hong Kong, is being investigated by mainland authorities for alleged 'economic irregularities'.
Mr Liu said yesterday Zhu Xiaohua's departure was a normal transfer back to Beijing.
He deflected questions about the rumoured investigation, saying he had never heard of any inquiry into Zhu Xiaohua's affairs.
Mr Liu is also seen as a protege of the Premier and his appointment has been interpreted by analysts as reflecting strong support by Beijing for the group.
The stock market reacted favourably and shares in the group's listed flagship China Everbright Ltd jumped 12.6 per cent to $6.25.
