Hong Kong-traded shares of Shanghai Electric Group Co were suspended yesterday after allegations surfaced of fund misappropriation by two of its directors, the Wall Street Journal reported. The Hong Kong stock exchange suspended trading pending a company announcement. It is the second time in a month that a Chinese company has been forced to stop trading following fraud allegations. Ocean Grand Holdings stopped trading July 17. Shanghai Electric executive director Han Guozhang was detained August 1 following an investigation by the Communist Party's Central Disciplinary Committee. Non-executive director Zhang Rongkun has been under 24-hour surveillance since July 17 on suspicion of illegally borrowing US$401 million to invest in a toll road.
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