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China probes state property firm execs for 'serious violations'
Business and Economy

China probes state property firm execs for 'serious violations'

by  AFP 2 min read
China is investigating four executives and state-owned property companies for alleged violations of the law
China is investigating four executives and state-owned property companies for alleged violations of the law. Photo: NICOLAS ASFOURI / AFP/File
Source: AFP

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China has announced it is investigating several executives at state-owned property companies over allegations of "serious violations of discipline and law".

The probes are another blow to a key sector, which is already struggling with slowing sales, angry customers and heavily indebted developers.

Authorities said in separate notices on Tuesday that they were investigating Zhuang Yuekai, chairman of C&D Real Estate, and Shi Zhen, chairman of C&D Urban Services.

They are also looking into Liu Hui, deputy general manager of Shenzhen Talents Housing Group, and Tang Yong, a former chairman at China Resources Land.

All four were "suspected of serious violations of discipline and law", the notices said, providing few details.

The language used in the announcements, however, typically indicates impending graft charges.

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These investigations may "deal a further blow to investor confidence and cause market worries about the internal governance of some state-owned enterprises", ANZ's Ting Meng told Bloomberg News.

The investigations come ahead of the ruling Communist Party's 20th National Congress, at which President Xi Jinping is widely expected to be anointed for an unprecedented third term.

Xi has championed an anti-corruption drive since coming to power, taking down big-name detractors, and observers expect him to use the months leading up to the meeting to cement his grip on power.

The probes follow a regulatory crackdown on some of China's biggest tech firms.

Authorities have also in recent months announced investigations into figures in the semiconductor industry, including minister for industry and information technology Xiao Yaqing.

Regulatory chiefs, insurance giants, security officials and financiers have faced censure or prosecution under the anti-corruption drive, but it is rare for a minister to be targeted while still in office.

The vast majority of people who have been investigated for corruption in China were eventually convicted.

Source: AFP

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