China President Xi Jinping is running an on-going investigation into business practices. Earlier this month the boss of China’s largest conglomerate, Guo Guanchang, was detained by police for three days and said to be helping them with their enquiries.
Also this month, two Citic bankers were brought in for questioning by the police without any explanation being given.
China Telecom’s Chang Xiaobing was initially detained by police in Beijing before it was announced that he had resigned for “severe disciplinary violations.”
China Telecom’s official statement was: “The board of directors hereby announces that Mr Chang Xiaobing has resigned from his positions as the executive director, chairman and chief executive officer of the company, with effect from 30 December 2015. Mr Chang has confirmed that he has no disagreement with the board and there is no other matter in relation to his resignation that should be brought to the attention of the shareholders of the company.”
Yang Jie, the executive director, president and chief operating officer of the company, will take over until a permanent replacement for Chang is found