More Shanghai officials could be implicated, say analysts
Authorities have detained two more officials of state-owned Shanghai Electric Group for involvement in a growing scandal over mismanagement of the city's pension fund.
Two officials from an asset management company under the group, deputy chairman Xu Wei and the deputy head of the company's investment management department, Cheng Yanmin , were being questioned, the China Securities Journal said yesterday. Shanghai Electric could not be reached for comment.
Three directors of Shanghai Electric, the city's seventh-biggest company by revenue last year, have already been placed under investigation. They are chairman Wang Chengming , executive director Han Guozhang and non-executive director Zhang Rongkun .
The telecommunications equipment maker, considered one of Shanghai's 'backbone' companies, is believed to have received money from the city's pension fund. Local governments manage pension funds with little oversight from the central government.
Mr Zhang, ranked China's 16th richest person by Forbes magazine, is also head of Fuxi Investment, which used a loan from the fund to invest in a highway project. The Chinese People's Political Consultative Conference stripped him of his post as a delegate on Monday.
