(Yicai Global) Aug. 21 -- Shares of Steyr Motors, an embattled Chinese producer of diesel engines for boats and land vehicles, fell by the daily limit of 10 percent following the disappearance of the company's newly appointed chairman.
The Changzhou, Jiangsu province-based company has lost contact with Chairman Li Xiaozhen, it said in a statement today, adding that the reason is unknown. The 37-year-old was appointed on July 27 after previously working as a deputy general manager at a steel company in eastern Shandong province.
To ensure the normal running of the company, the board of directors will elect a new chairman as soon as possible.
Steyr [SHE:000760] closed trading in Shenzhen today at CNY3.78 (USD0.55) a share. The stock more than doubled in value between July 16 and 26 to CNY6.16, since when it has retrenched almost 40 percent.
Steyr and its subsidiaries are involved in a lawsuit and several of their bank accounts are frozen, which has severely affected business. Li's disappearance adds to the past months' list of changes in the firm's management. Chairman Gao Liyong resigned on July 2, citing ill health, while General Manager Shang Qing quit at the end of June due to "changes to the company's internal arrangements."
Editor: Emmi Laine