Written by Billwilliam
As reported by Sina Finance, Shanghai Electric Chairman also acting as the CCP Secretary of the company, Zheng Jianhua is currently under investigation by the Shanghai City Discipline Inspection Commission for alleged illegal activities. This is the Chinese Communist Party’s latest crackdown on corporate directors whom they don’t like.
Because of the CCP government crackdown, Shanghai Electric’s share price has plunged by 23.03% in A-Share Market and by 30.02% in Hongkong Stock Market. Its total market cap in both mainland China and Hongkong is down by 30 billion RMB. Shanghai Electric Group, the biggest shareholder of Shanghai Electric, has dumped 409 million shares since last March, reducing its shareholding from 57.17% to 52.55%.
Shanghai Electric is a state-owned conglomerate whose business includes the three sectors of energy equipment, industrial equipment, and integrated service. Its main products are fossil-fuel (coal and gas) generators, nuclear generators, wind turbines, electric infrastructure, eco-friendly equipment, automated equipment, elevators, railway transportation, and machine tool.
The investigation on Shanghai Electric is reportedly due to its 8.3 billion RMB deficit incurred by its subsidiary, Shanghai Electric Communications. However, according to Mr. Miles Guo, the actual reason of government crackdown is due to the internal political struggles inside the Party, and different sides of the CCP like to destroy corporate directors whom they don’t like. Mr. Zheng’s daughter now joins the Whistleblower Movement to seek protection from the CCP’s retaliation.