The arrests of the chairman and two executive directors of waste-management company China Sciences Conservational Power on corruption charges, which follows Monday's reported detainment of six executives of Beijing Media Corp, both reported by The Wall Street Journal, are again highlighting corporate governance risks in mainland companies. Three of the detained executives of Beijing Media, the advertising and sales arm of the Beijing Youth Daily, face bribery allegations, according to a company statement; it was not clear why the other three employees were detained. The first state-owned media company to list overseas, Beijing Media's stock price has lost 54% of its value less than a year after it debuted on the Hong Kong stock exchange, closing at US$1.35 Tuesday.
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