(Yicai) Jan. 27 -- Hu Hong, former deputy general manager of a listed subsidiary of state-owned China Baowu Steel Group, has been taken into custody for investigation, according to an insider from the steelmaker who spoke to Yicai.

The reason for the investigation into Hu by government authorities remains unclear, the source from Baoshan Iron & Steel, also known as Baosteel, told Yicai.

The Shanghai-based iron and steel giant recently announced that Hu had resigned for personal reasons.

Hu was overseeing the company's sales operations from 2021. Prior to this role, he served as assistant general manager at Baosteel and general manager of the company's marketing center.

Born in 1970, Hu began his career at Baosteel immediately after graduating from university in 1993, per his resume. Throughout his tenure, he managed various regional sales departments and served as chief representative for Southeast Asia and South Asia regions, as well as GM of Baosteel Singapore.

Baosteel has largely avoided the profit compression and overcapacity issues affecting the domestic steel market, thanks to its premium and differentiated products. In the first three quarters of last year, the company's grain-oriented silicon steel product segment increased sales by 28 percent.

Hu's compensation for 2023 exceeded CNY2 million (USD275,338), while Baosteel's total selling expenses for the year amounted to CNY1.8 billion (USD245.3 million), based on the annual report.

Editors: Tang Shihua, Emmi Laine