Billionaire Zhang Zhi Rong quit as
chairman of two Hong Kong-listed companies about five weeks
after an investment firm he controlled agreed to pay $14 million
to resolve U.S. inside-trading claims.

Zhang resigned from the boards of shipbuilder China
Rongsheng Heavy Industries Group Holdings Ltd. (1101) and developer
Glorious Property Holdings Ltd. (845), according to statements
yesterday. He is the largest shareholder in both companies. The
decision has nothing to do with the U.S. case, iPR Ogilvy in
Hong Kong, which handles Zhang’s public relations, said in an e-
mailed reply to Bloomberg News questions.

The billionaire is leaving “to devote more time to his
personal endeavors” and there were no disagreements with
boards, both companies said. Rongsheng Chief Executive Officer
Chen Qiang took over as chairman at the Shanghai-based
shipbuilder, while Cheng Li Xiong stepped down as CEO of
Glorious to become chairman. Liu Ning succeeded Cheng as CEO.

Well Advantage Ltd., controlled by Zhang, paid the
settlement after an investigation into $7 million of profit made
from trades ahead of Cnooc Ltd. (883)’s announcement of a bid for
Nexen Inc. (NXY) The company neither admitted nor denied wrongdoing,
according to a Securities and Exchange Commission statement.

Zhang told investors on a call that he won’t sell shares in
Glorious for at least a year, according to iPR Ogilvy. He later
declined to comment when asked about Rongsheng stock, the PR
agency said.

“We respect his decision to focus on his own personal
business,” Doris Chung, a Hong Kong-based spokeswoman for
Glorious, said of Zhang’s departure.

Rongsheng said that Zhang himself had suggested leaving.
The move showed his “confidence in the management team,” it
said in an e-mailed reply to Bloomberg News questions. Zhang
didn’t have an executive role. Zhang’s father Zhang De Huang
also stepped down as vice chairman of the shipbuilder, according
to a statement.

To contact Bloomberg News staff for this story:
Jasmine Wang in Hong Kong at
jwang513@bloomberg.net;
Bonnie Cao in Shanghai at
bcao4@bloomberg.net

To contact the editor responsible for this story:
Neil Denslow at
ndenslow@bloomberg.net