China Telecom chairman under probe

Anti-graft regulators in China announced they were investigating the chairman of the China Telecom Corp, making him the most recent high-ranking official targeted by President Xi Jinping’s Communist Party as it cracks down on the country’s corruption.

Chang, the former chairperson of China Unicorn, another major state-owned telecommunications company, was named head of China Telecom in August.

Chang was under investigation for suspected “severe disciplinary violations”, Xinhua cited the Communist Party of China (CPC) Central Commission for Discipline Inspection (CCDI) as saying.

The Company will make further announcement as and when appropriate in accordance with the requirements under relevant laws, regulations and the listing rules says Chu Ka Yee, company secretary, China Telecom.

Market sources believed Chang’s “violations” took place during his time at China Unicom, the mainland’s third largest telecom operator, where he had been in charge since 2004.

The team said in a report it had collected evidence that reflected the problem of China Unicom’s bosses, and passed them on to the anti-graft watchdog.

The company now maintains normal business operations.

The probes have reached into China’s private sector as well, with conglomerate Fosun Group’s chairman, Guo Guangchang, disappearing earlier this month. “No matter who the new head of China Telecom is, he or she will want to have broader cooperation with China Unicom”.