China Resources appoints former bank executive as new chairman

China Resources (Holdings) Co has appointed a new chairman with immediate effect, replacing Song Lin, who is being investigated by Chinese authorities, the firm said in a statement on Wednesday.

Fu Yuning, a former executive chairman of China Merchants Group, would take over from Song, China Resources said in a statement on its website. China Merchants Group is the parent of ports operator China Merchants Holdings International Co.

The move to appoint a new chairman comes after the shares of several Hong Kong-listed units under parent group China Resources Holdings came under heavy selling pressure following news of Song's probe.

While Song hasn't been charged or convicted of any specific crime, the swift management reshuffle suggests the probe into Song might be complex and drag on for some time.

The Central Commission for Discipline Inspection of the Communist Party of China last week said it was investigating Song for "serious discipline and law violations." The Xinhua News Agency reported the investigation was part of an intensifying nationwide crackdown on graft.

China Resources (Holdings) is a State-owned conglomerate which has five of its units listed in Hong Kong. The company is involved in sectors including real estate development, semiconductor and compressor, and gas.

China Merchants confirmed on Wednesday that Fu had a new appointment and would no longer serve as chairman.