China shares fall most in a month on production data, disappearance of Telecom boss Chang Xiaobing

The Shanghai Composite reported its largest decline since late November

Chairman and CEO of China Telecom, Chang Xiaobing speaks at the announcement of their annual results for 2003, 17 March 2004. (Getty)

China's economic rollercoaster hit fresh turbulence today as shivers over the disappearance of a high ranking telecoms boss and poor production data sent shares spiralling by their biggest margin in a month.

The country’s barometer stock index the Shanghai Composite reported its largest decline since late November after data showed a big fall in profits of large Chinese companies. Changes to the country’s stock listing regime were also blamed for the slump.

The nervousness was compounded by the disappearance of Chang Xiaobing, chairman of the country’s third biggest phone network China Telecom.

The Communist Party’s anti-corruption watchdog the Central Commission for Discipline Inspection said Chang was under investigation over a “serious violation of discipline”.

Chinese business magazine Caijing previously reported Chang had been “taken away” by authorities after fellow executives at the phone giant were told a meeting scheduled for yesterday had been postponed.

Shares in China Telecom fell up to 3 per cent in Hong Kong. The company also has a New York listing, although the government remains the company’s biggest shareholder.

The 58-year old, who joined China Telecom in September, is the latest high profile figure to go missing in a crackdown on senior business leaders led by Chinese leader Xi Jinping.

Fosun boss Guo Guangchang was the most high profile case when he vanished earlier this month. Guo, dubbed China’s Warren Buffett, later reappeared after helping authorities with their enquiries

Others like Citic Securities head Cheng Boming have formally been placed under investigation for allegedly trading on insider information while the boss of China National Petroleum Corporation Jiang Jiemin was jailed in October for 16 years as part of the crackdown.

Chang’s case contributed to downbeat investor sentiment after weak economic data was published.

Figures from China’s National Bureau of Statistics showed a 1.4 per cent decline in industrial profits, sending the Shanghai index slumping 2.6 per cent to 3,533.78, its biggest fall since 27 November,

The 1.4 per cent fall - the sixth straight month of profit declines - mean industrial profits are on course for an annual decline of 2 per cent in 2015.

Looming changes to stock market listing rules were also blamed for triggering the decline.

Chinese policymakers are planning to introduce new stock market listing rules as early as March making it easier for firms to list on the stock market, which could dent the flow of money into already listed companies.

China’s financial markets have endured an uneasy calm since late August when stocks collapsed 40 per cent but weak economic data has stoked fears more turmoil is in store.