Date
28 July 2017
Chang Xiaobing also resigned as executive director of China Telecom effective immediately. Photo: Bloomberg
Chang Xiaobing also resigned as executive director of China Telecom effective immediately. Photo: Bloomberg

China Telecom chairman quits after being held in graft probe

Chang Xiaobing, chairman and chief executive of China Telecom Corp. (00728.HK), has resigned days after the country’s anti-graft watchdog said it had detained him for suspected “serious violation of discipline”, a euphemism for corruption.

Chang also resigned as executive director effective immediately, the Wall Street Journal reported, citing a stock market filing.

The company, China’s third-largest mobile operator by the number of subscribers, said there was “no other matter in relation to his resignation that should be brought to the attention” of shareholders.

Chang, 58, was formerly chairman of China Unicom Ltd. (00762.HK), the country’s second-largest mobile operator. He had assumed the top post at China Telecom in August.

He was also Communist Party secretary at both state-owned companies.

China Telecom said on Wednesday in the filing that president Yang Jie would “exercise the powers” of chairman and CEO until it formally appoints Chang’s successor.

Yang also serves as chief operating officer.

Chang’s detention came as Chinese President Xi Jinping’s three-year campaign against corruption expanded into state-owned companies.

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RA/CG

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