China's Gome replaces billionaire chairman under investigation

Nov 28, 2008, 7:44 GMT

   Beijing - Gome electronics retail chain appointed Chen Xiao as acting chairman on Friday, a day after Beijing police confirmed that billionaire chairman Huang Guangyu was under investigation for 'economic crimes,' the official Xinhua news agency reported,

     Also on Friday, the company said that its chief financial officer, Zhou Yafei, was under police investigation. It said it had appointed an acting financial officer.

 Huang, 39, whose personal wealth is estimated at 6.3 billion dollars, has been in detention since last week, newspaper reports said. Police would only confirm that he is under investigation.

   According to unconfirmed reports, Huang is accused of manipulating shares of a Shanghai pharmaceutical company controlled by his older brother.

The Gome Electrical Appliances chain, has 1,300 outlets in more than 300 cities with 300,000 employees. Huang is also a real estate investor.

Gome is internally monitor ing and assessing 'the impact of Huang's case on the company's financial status and operations.'

     Preliminary internal investigations haven't found any evidence of embezzlement, said the report.