Chinese anti-corruption authorities have detained Liu Chong — the former chairman of Cosco Shipping Development Co, according to local news agencies.
Liu was reportedly taken away on 17 November, and his office has been sealed.
Caoxin news reported that Liu may have been involved in an illicit deal with another Chinese-listed company several years ago.
Cosco Shipping Development is a subsidiary of China Cosco Shipping Corp (Cosco Group), specialising in financial services, including ship leasing, container leasing, container manufacturing, shipping logistics and investments.
The company is headquartered in Shanghai and is listed in Shanghai and Hong Kong.
On Tuesday, Cosco Shipping Development announced that Liu had resigned from the company with effect from 20 November due to him “being unable to devote sufficient time to perform duties by reason of personal affairs”.
It added that Liu no longer held any position in the company or its subsidiaries.
Liu was appointed as the chairman of Cosco Shipping Development in June 2022. Before that, he was the company’s general manager and executive director and also served as vice chairman of China International Marine Containers, the world’s largest container manufacturing company.
In addition, Liu served as a non-executive director of China Everbright Bank, Cinda Asset Management and China Merchants Securities.
On Tuesday, all three companies announced that Liu had resigned.
Zero tolerance
China has a zero-tolerance policy on corruption, with many high-profile business and political figures being detained in recent years.
Key ship financing executives held for investigation include Fang Xiuzhi, former shipping head of Bank of Communications Leasing; Guo Fangmeng (Bill Guo) of Citic Financial Leasing and formerly of ICBC Financial Leasing; Fan Qiyong, shipping head of Minsheng Financial Leasing; Yang Changkun (CK Yang), partner of Equator Fund Management and ex-head of shipping at ICBC Leasing and CExim; David Wu of Landmark Capital.
In March 2023, Li Li, the former shipping head of the Export-Import Bank of China, was reported to have pleaded guilty to charges of accepting bribes relating to ship finance deals, according to local news outlets.
