Shanghai has removed a corporate chief from the city legislature for alleged illegal financial activities, state media said yesterday.
At a meeting on Wednesday, the Shanghai People's Congress accepted the 'voluntary request' of Wang Miaoxing, former head of the Shanghai Xinchangzheng Group, to give up his membership of the legislative body, Shanghai Daily said.
Wang was originally placed under investigation due to a questionable share transfer by his company, Shanghai Securities News reported last month.
A former party secretary of Changzheng town in Shanghai's Putuo district, Wang began to run Xinchangzheng Group in the early 1990s.
The private company has various business interests, including property development and industrial investment. In 2005, Xinchangzheng transferred 30 per cent of its shares to three other private firms, which were then sold to another investment company five months later, violating an agreement which required the shares to be held.
In a separate transaction, Xinchangzheng bought a 70 per cent stake in a shopping centre in Putuo district from Sichuan Xinglida Group and then sold it to Shanghai Dehong Investment Company for 1.8 billion yuan. Dehong reportedly received 2.7 billion yuan from the Shanghai pension fund which it used to help buy the stake, according to Shanghai Securities News.