TONGLING Nonferrous Metals Group Co., China’s second-largest copper smelter, saw its shares slump more than 4 percent yesterday in Shenzhen trading as authorities started an investigation into the death of the company’s chairman.

    The company said in a statement yesterday that chairman Wei Jianghong died Tuesday after falling from a building.

    Tongling Nonferrous said it was conducting further investigations and corporate operations were normal. Vice chairman Yang Jun was appointed the acting chairman, the statement said.

    The firm’s shares yesterday closed down 4.40 percent at 8.91 yuan (US$1.43), the biggest loss since March 10. The Shenzhen Composite Index dropped 0.40 percent.

    Wei, 52, became the company’s chairman in 2007, according to company documents. He was also a delegate to the National People’s Congress, China’s top legislative body, according to the company’s 2013 annual report.

    Wei’s death follows a string of similar incidents in recent months after the government introduced a nationwide crackdown on graft by officials and company executives.

    The former chairman of Harbin Pharmaceutical Group Sanjing Pharmaceutical Co. jumped to his death last month while being investigated for corruption. Bai Zhongren, the ex-president of China Railway Group Ltd., the second-largest rail-builder, fell from a building in January.

    Domestic media said Wei jumped from a hotel owned by the company in Tongling, the city in the eastern province of Anhui where it has its headquarters.

    China Business News quoted a source as saying the incident might involve corruption since disciplinary authorities had initiated an investigation involving Tongling Nonferrous.

    The firm’s profits have declined in recent years due to the sluggish world economy and slower domestic demand, reports said.

    Its net profit for last year slumped 38 percent year on year to 573 million yuan, according to an exchange filing. (SD-Agencies)