(Yicai Global) April 24 -- Shares of Dongfang Electronics plunged after the chairman and general manager of its parent company resigned from all positions at the Chinese state-owned maker of power grid equipment because the authorities are investigating him.

Dongfang Electronics [SHE: 000682] closed down 8.3 percent at CNY8.30 (USD1.20) today, after earlier slumping by the 10 percent exchange-imposed limit.

Yang Hengkun submitted a letter of resignation and quit all of his positions at Dongfang Electronics, including director, due to an official investigation into him by the authorities, the Shandong province-based company said late yesterday.

The announcement did not give any reasons for the probe, but said Dongfang Electronics is operating normally and will not be affected by the matter. Yang did not hold any shares in the company, it added.

According to Shandong province’s Commission for Discipline Inspection, Yang is suspected of serious violations of law and discipline and is subject to disciplinary review and surveillance by the Commission for Discipline Inspection of the city of Yantai.

Dongfang Electronics Corporation, controlled by the Yantai State-owned Assets Supervision and Administration Commission, is the largest shareholder of Dongfang Electronics with a 27.6 percent stake.

Born in 1964, Yang was named chairman and GM of Dongfang Electronics Corp. and director of Dongfang Electronics in 2007. Before that he was the GM of another local state-owned firm. In December 2021, Yang was named ‘Excellent Entrepreneur in Shandong Province.’

Editor: Futura Costaglione