One of China’s richest men named in Hikvision securities probe, Latest World News - The New Paper

One of China’s richest men named in Hikvision securities probe

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SHANGHAI/BEIJING : China's securities regulator is investigating one of the country's richest men for alleged violation of disclosure rules as a director of US-blacklisted surveillance camera giant Hikvision, the company said.

Directors Gong Hongjia and Hu Yangzhong had been named as suspects and would cooperate with the investigation by the China Securities Regulatory Commission (CSRC), the firm said in a filing to the stock exchange on Wednesday.

It did not provide any details of the alleged violations.

Mr Gong is a Hikvision vice-chairman and the firm's largest individual shareholder with a 13.4 per cent stake, according to Refinitiv data.

The Forbes China rich list puts his net worth at US$9 billion (S$12.2 billion), making him the 26th richest person in the country.

Mr Hu is general manager of Hikvision, the world's biggest supplier of video surveillance systems, and is ranked by Forbes as the 265th wealthiest person in China with a net worth of US$1.5 billion.

Reuters was not immediately able to reach the two directors, whose whereabouts are unknown.

Hikvision shares fell as much as 4.5 per cent yesterday while the broader market was up 0.3 per cent.

Two sources familiar with the matter said the allegation pertained to how some details of an employee bonus plan had not been declared.

The investigation concerned the "mentioned board member individuals" and not the company, a Hikvision spokesman said.

She declined to comment on whether it was related to a bonus plan.

"Hikvision performs information disclosure obligations strictly in accordance with regulatory requirements," the spokesman said.

The commission did not respond to a request for comment.

Hikvision was one of eight firms added to a US blacklist in October aimed at punishing Beijing for its treatment of Muslim minorities in the north-western region of Xinjiang.

The firm allegedly provided equipment to police throughout Xinjiang, where China has been accused by Washington of repression, arbitrary detention and mass surveillance of the Muslim minority.- REUTERS