July 23 (Bloomberg) -- Yanzhou Coal Mining Co., China’s fourth-largest producer of the fuel, said Chairman Li Weimin and Vice Chairman Wang Xin resigned due to “work allocation.”
The resignations took effect yesterday, Shandong province-based Yanzhou Coal said in a statement to the Hong Kong stock exchange. The board elected Shi Xuerang as acting chairman, according to the filing.
Li will join Jinan, Shandong-based Shandong Energy Group Co. as general manager, vice communist party secretary and a board member, Yanzhou Coal spokesman Zhang Baocai said by phone. Three calls to Shandong Energy Group weren’t answered today. Wang will head Shandong province’s Renewable Energy Committee, Zhang said. Two calls to Shandong government offices also went unanswered.
The move is routine, Leo Wu, a Shenzhen-based analyst at Guotai Junan Securities Co., said by phone today. “Executives at China’s state-owned companies frequently get shuffled between other companies or government positions,” he said.
Other state-owned companies have also witnessed management changes this week. Baoshan Iron & Steel Co. General Manager Ma Guoqiang resigned to become general manager at Wuhan Iron & Steel Group.
Yanzhou Coal, which has fallen 74 percent over Li’s two and a half year tenure, rose 4.5 percent to HK$5.84 as of 2:45 p.m. in Hong Kong. The benchmark Hang Seng Index rose 2.2 percent.
Li also resigned as chairman of Yancoal Australia, a unit of Yanzhou Coal, a position he held since June 2012, according to an Australian Stock Exchange filing today. The change comes amid a bid by Yanzhou Coal to privatize it’s Australian unit and list depository receipts using the underlying Hong Kong-listed stock. The plan needs shareholder approval.
Yanzhou Coal’s board nominated Zhang Xinwen, 48, and Li Xiyong, 50, as director candidates, according to yesterday’s filing.
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