China Puts President of Shanghai Industrial Investment Under Anti-Graft Investigation
Liao Shumin | Chen Minzhi
DATE:  Nov 21 2023
/ SOURCE:  Yicai
China Puts President of Shanghai Industrial Investment Under Anti-Graft Investigation China Puts President of Shanghai Industrial Investment Under Anti-Graft Investigation

(Yicai) Nov. 21 -- Zhou Jun, president of Shanghai Industrial Investment Holdings, the city’s biggest state-owned investment holding conglomerate, is being investigated by China's top anti-corruption watchdog.

Zhou is under disciplinary review and supervisory investigation on suspicion of serious violations of discipline and law, the Central Commission for Discipline Inspection announced yesterday.

Three listed Chinese firms under Shanghai Industrial Investment also said on Nov. 19 that Zhou had quit for personal reasons the day before. He resigned as chairman of Shanghai Pharmaceuticals Holding, as vice chairman and chief executive of Shanghai Industrial Holdings, and as chairman of SIIC Environment Holdings.

In early September, Shanghai Pharma said four executives, including Vice President Pan Deqing, were being probed on suspicion of breaching discipline and law.

Zhou, who has worked in Shanghai Industrial Investment and its associated firms for more than 27 years, became chairman of Shanghai Pharma in 2016, data from Wind Information showed. Over his seven-year tenure, revenue surged more than 90 percent and exceeded CNY200 billion (USD28 billion) in 2021. 

But Shanghai Pharma's sales expenses also soared, surpassing CNY10 billion (USD1.4 billion) since 2018 and ranking top among more than 500 Chinese mainland-listed pharmaceutical companies for five straight years, according to Wind.

Zhou holds many other positions at firms under Shanghai Industrial Investment, including chairman of its capital management business and Shanghai Culture Industry Development Investment Fund, Shanghai Pharma's 2022 annual earnings report showed.

Shanghai Industrial Investment had revenue of HKD298.7 billion (USD38.3 billion) last year, net profit of HKD15.8 billion (USD2 billion), and assets worth about HKD488.4 billion. It also owns Shanghai Industrial Development and Shanghai Industrial Urban Development Group.

Shanghai Pharma’s stock [SHA: 601607] rose 0.5 percent to CNY18 (USD2.53) in Shanghai today

In Hong Kong, Shanghai Industrial Holdings [HKG: 0363] ended unchanged at HKD9.61 (USD1.23) a share, Shanghai Industrial Urban Development [HKG: 0563] gained 1.5 percent to 34 Hong Kong cents (4 US cents), and SIIC Environment [HKG: 0807] fell 0.9 percent to HKD1.12.

Editor: Martin Kadiev

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Keywords:   Zhou Jun,Shanghai Pharmaceuticals Holding,Shanghai Industrial Investment Holdings