Larry Yung and Henry Fan, chairman and managing director respectively of Chinese conglomerate CITIC Pacific, resigned Wednesday, the Financial Times reported. The departures came just five days after CITIC’s Hong Kong headquarters was raided by police as part of an investigation into alleged false statements and fraud. Five months earlier, the company required a bail-out from its Beijing-based state-owned parent, China International Trust and Investment Corp, after losing billions of dollars on foreign exchange contracts. This led to CITIC Pacific posting its first ever annual loss in 2008. Yung and Fan helped found the company in 1990, turning it into a stalking horse for the Chinese government with interests spanning infrastructure, airlines and telecommunications. Chang Zhenming, vice chairman and president of the parent company, will take over both vacant roles.
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