Investing.com – Shares in China’s China Huarong Asset Management Co Ltd (HK:2799) jumped about 6% to HK$1.47 on Tuesday, a day after a 3% drop caused by the announcement of a corruption investigation into Chairman Lai Xiaomin and his expulsion from the Communist Party of China (CPC).
Huarong’s shares fell 3% on Monday after China’s Central Commission for Discipline Inspection (CCDI) issued a statement on its website announcing that Lai had been expelled from the CPC for corrupt practices.
Huarong’s shares have lost 62.47% of their value since the start of this year, according to a Reuters’ report.
Lai was alleged to have taken part in political opportunism and careerism as well as accepting entertainment from private business owners. The Chinese authorities said he “seriously polluted the political ecosystem” by employing only his relatives and friends. The Chinese publication Caixin reported that authorities had found more than RMB270 million in cash in various residences linked to Lai.
Lai may be the latest casualty of an ongoing anti-graft campaign that started in 2012 and has so far led to the punishment of more than one million party members.