Shanghai Jahwa United Co., a cosmetics and household goods maker, fell by the daily limit in Shanghai trading after the company said Ge Wenyao stepped down as its parent’s chairman.
Shanghai Jahwa shares dropped 10 percent to 62.99 yuan, the most since May 2007. Ge will remain as the listed company’s chairman and operations haven’t been affected by the change, according to its statement to Shanghai Stock Exchange yesterday.
Ping An Insurance (Group) Co., which owns 100 percent of Jahwa Group, said there was an investigation of the company. Ping An didn’t comment on the change in Ge’s role at the cosmetics maker in an e-mailed statement today.
Ge’s compensation was based on strict company rules, according to the official microblog of Jahwa Group’s listed company. Ge has hired a lawyer, the executive said in a posting on his official microblog, which was verified by a media official from Shanghai Jahwa.
Ping An won the right to buy state-owned Jahwa Group in 2011. The purchase was aimed at freeing the company of state-imposed rules limiting it to the cosmetic industry and allow it to fund expansion into luxury products and acquiring foreign brands, Ge said at the time.
— With assistance by Liza Lin, and Dingmin Zhang