What’s new: Zheng Jianhua, former chairman of state-owned electric equipment manufacturer Shanghai Electric Group Co. Ltd. (601727.SH), stood trial Wednesday in Shanghai on charges of embezzlement, abuse of power and taking 156 million yuan ($22.6 million) in bribes.
Zheng, 63, used his positions as senior executive in Shanghai Electric between 2003 and 2021 to take bribes in exchange for business favors to others, prosecutors said. He also partnered with associates to embezzle hundreds of millions yuan of funds from the company.
The court will announce a verdict and sentencing at a later date.
Background: Zheng was placed under investigation in July 2021 following an investigation by the securities regulator into the conglomerate over violations of disclosure rules.
A month later, the company’s then-President Huang Ou fell to his death from his apartment in Shanghai in an apparent suicide, Caixin reported.
Zheng was removed from public positions and expelled from the Communist Party in July 2022 due to alleged bribery and other misconduct.
Shanghai Electric’s troubles started with a missed-payment scandal. In May 2021, the company said as much as 8.3 billion yuan ($1.2 billion) of net income attributable to shareholders was at risk because four clients of a subsidiary — all state-owned enterprises — missed payments totaling 4.5 billion yuan.
The news triggered a slump in the company’s stock and an investigation by the top securities regulator.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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