Citic Pacific Chairman Yung Resigns on Police Probe
Larry Yung quit as chairman of Citic Pacific Ltd. after the biggest currency loss reported by a Chinese company triggered a police investigation, Bloomberg reported. Yung, the son of a former Chinese vice president, will be replaced by Chang Zhenming, 52, the vice chairman of parent Citic Group, Citic Pacific said in a statement to the Hong Kong stock exchange today. The 67-year-old executive, ranked the nation’s richest man in 2005, is leaving after currency losses of HK$14.6 billion ($1.9 billion) forced him to seek help from Beijing. The investment company controlled by China’s cabinet is subject to a police probe for alleged false statements and conspiracy to defraud. Citic Pacific is down 35 percent in Hong Kong trading since disclosing the loss in October, compared with the 6 percent decline in the benchmark Hang Seng Index. The stock has been suspended since April 3. Read more.