(Yicai Global) Oct. 9 -- Shares in Beijing Yanjing Brewery, maker of one of China's most popular beers, fell by almost 5 percent during trading today on the news that its chairman has been detained by prosecutors and is under investigation for a number of suspected infractions.
Yanjing Brewery's stock price [SHE:000729] closed down 2 percent today at CNY8.26 (USD 3.8 percent, after sinking to as low as CNY8.01 during the day, bringing an end to a 30 percent gain in share price so far this year.
Zhao Xiaodong, who is also general manager, is being questioned by prosecutors and is unable to perform his duties as normal, the firm said yesterday, without going into details of the nature of the investigation.
Business continues as usual and Vice Chairman Xie Guangjun is in charge, the Beijing-based brewery added.
Under Chinese law, prosecutors, in addition to the police, have the power to detain people should they have proof of crimes such as corruption, bribery and serious dereliction of duty and if they are in need of further information.
48-year-old Zhao joined Yanjing Brewery 22 years ago. He has served as general manager of Yanjing Beverage, vice chairman of Beijing Yanjing Brewery Investment, as well as vice chairman and executive director of Beijing Enterprises Holdings, of which Yanjing Brewery is a key asset. His gross salary last year was CNY709,000 (USD106,000).
Editor: Kim Taylor