The Board of Directors of Bank of China Hong Kong (BOCHK) announced Thursday in a statement that investigation of two former high management personnel is unconnected with and does not affect the assets, liabilities and operating results of the company.
It noted that the directors were informed by Bank of China (BOC) Thursday that Liu Jinbao, the former Chief Executive of BOCHK, and Zhang Debao, the former general manager of its Chief Executive's Office, are being investigated by the judicial authorities in the Chinese mainland in relation to the matter regarding alleged unauthorized distribution for personal purposes of certain funds belonging to the controlling shareholder of former constituent banks.
The statement noted that Zhang was posted back to BOC in April 2004 and is no longer an employee of BOCHK or any of its subsidiaries. According to the statement, the matter came to light in the course of the investigation of Liu after he was posted back to BOC in May 2003.
The statement called on the investors and shareholders to exercise caution when trading in shares of the company, when the investigation is going on.
Directors of BOCHK announced on Aug. 2 that they were informed by the parent company that the judicial authorities of the Chinese mainland are investigating two former deputy chief executives Zhu Chi and Ding Yansheng in connection with the matter.
BOCHK's Audit Committee of the Board and the Independent Non-Executive Directors, as well as the Hong Kong Monetary Authority, have commenced investigation into the matter, it added.