China Mobile vice-chairman to step down

One of China Mobile top executives, Zhang Chunjiang, will step down from his post, according to a notice posted on the Chinese Communist Party website.

Zhang Chunjiang is being investigated “due to suspected serious personal violations,” the company said in a statement issued through the Hong Kong stock exchange, where its shares are traded. It gave no details.

Zhang is vice chairman and an executive director of the company. Zhang joined China Mobile in May 2008 after serving as chairman of China Netcom Ltd, a fixed-line carrier that was merged with another phone company in an industry overhaul last year. He also is a former director of the telecoms department of the Chinese ministry that oversees the industry.

China Mobile reported a profit of 83.9 billion yuan ($12.3 billion) for the first nine months of this year but said earnings growth was slowing due to competition. The company says it has 518 million mobile accounts.

Hong Kong-listed China Mobile has said in the past that it would like to be among the first companies to be allowed to list on a new board being set up in Shanghai specifically for companies domiciled overseas. China’s government is expected to come out with regulations governing the board in 2010.

Despite its status as China’s dominant mobile carrier, China Mobile is technically domiciled overseas and is known in Hong Kong, where its shares are traded, as a red-chip company.

This news is from China electronics manufacturer.

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