Gome appoints new chairman as police continue investigation

Tries to draw line under probe into ex-boss

By Kelly Fiveash • Get more from this author

Posted in Financial News, 19th January 2009 12:21 GMT

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Gome Electrical Appliances Holdings has rejigged its management team while a police probe into the former chairman's finances continues.

China’s biggest electrical retailer has been attempting to distance itself from former chairman Huang Guangyu and his wife after he was asked to leave the company last month amid allegations of stock market manipulation.

The firm said in a statement to the Hong Kong stock exchange yesterday that it has handed the chairmanship to Gome’s CEO Xiao Chen.

Huang, who is also known as Wong Kwong-yu, went missing in November when it was revealed that the electrical appliance tycoon was being investigated by Beijing police over alleged financial misconduct at Gome.

According to Reuters, which cites the respected Chinese magazine Caijing, the probe has since widened to include high-ranking officials in the public security bureau.

Gome's statement is here (pdf). ®

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