Sinosteel chief ousted by Beijing amid woes in steel sector
Two state-backed firms hurt by falling steel prices triggered by economic slowdown
The mainland's loss making and overcapacity-plagued steel sector is seeing more pain as Beijing reportedly removed the head of state-backed Sinosteel amid its financial difficulties, while Anhui Wanjiang Logistics Group has defaulted on its debt as two top managers are being probed for alleged irregularities.
Sasac, the State-owned Assets Supervision and Administration Commission, has discharged Sinosteel president Jia Baojun from his position, reported Bloomberg, citing two people who have seen an internal notice.
An unnamed official from Beijing-based Sinosteel said Tuesday it is facing difficulties in a slowing economy, with some account receivables not collected on time.
An official reached at Sinosteel said the unlisted company would not respond to external enquiries. Yesterday Jia was still listed on its website as president.
Three years ago Jia replaced Huang Tianwen, who was removed by Sasac after the company was accused of inflating sales at its units by the National Audit Office.
Separately, Shanghai-listed state-backed commodities logistics service provider Anhui Wanjiang yesterday said in a filing to the stock exchange that it owed 16.75 billion yuan (HK$21.1 billion) of debt, of which 2.07 billion yuan was overdue.