Chinese CEOs keeping missing as the result of summer stock crash?

Dec 02, 2015, 08:30 am

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Source from Xinhua News Agency, Yonhap News

By AsiaToday reporter Goh Jin-ah - - As Chinese authorities has been sharpening their knives aimed at the financial industry since the country's terrible stock crash last summer, the mysterious disappearance of CEOs in China is gaining much attention.

CNN Money reported on Friday that some Chinese CEOs have been missing since few months ago and that China's state media stated that the CEOs have been caught in a government investigation into insider dealing or bribery, but few details are ever revealed.

Some of these cases appear to be linked to Xi Jinping's anti-corruption campaign launched in 2013. But lately, more seem to be linked to investigations relations to China's stock crash last summer. Officials have been searching people to blame for causing massive market swings.

The disappearance of Guotai Junan CEO Yim Fung has shocked the stock market. The Hong Kong subsidiary of one of China's largest brokerages stated on November 23 that its CEO was missing. Shares plunged 12% afterwards. The company has no idea of his whereabouts.

Local media outlets suggest that Yim's disappearance is connected with Yao Gang, vice chairman of the China Securities Regulatory Commission, who is under investigation over suspected corruption. Yao worked at Guotai Junan from 1999 to 2002.

Early this year, a Chinese financial news magazine reported that Minsheng Bank president Mao Xiaofeng couldn't be reached after being arrested by the authorities. Then, in February, the bank announced that Mao had resigned for "personal reasons."

A month later, the bank's shares plunged 20% while there's still no specific information on what happened to Mao. Several other financial executives, such as China's Agriculture Bank president Zhang Yun and Shanghai-based Zexi Investment's fund manager Xu Xiang were recently arrested and are being investigated for alleged insider trading.

#stock crash #China #CEOs #disappearance #investigation 
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