Shanghai Construction Group Vice President Zhang Huizhong was removed from his position on May 28, 2026 and officially announced as falling from grace on that day. In the first five months of 2026, over ten state-owned enterprise executives in Shanghai have been investigated.
In the evening of May 28, 2026, at 18:00 Beijing time, the Chinese Communist Party Central Commission for Discipline Inspection and the National Supervisory Commission website reported, based on information from the Shanghai Municipal Commission for Discipline Inspection and Supervision, that Zhang Huizhong, former vice president of Shanghai Construction Group Co., Ltd. (referred to as “Shanghai Construction”), is under investigation for serious violations of discipline and law.
On the same day, Shanghai Construction issued an announcement stating that the Board of Directors of Shanghai Construction held a meeting on May 28, 2026, and through on-site combined communication voting, removed Zhang Huizhong from the position of vice president of the company. After being removed, Zhang Huizhong no longer holds any other positions within the company. The company has designated other senior management personnel to perform his duties. The announcement indicated that Zhang Huizhong was originally appointed until May 13, 2027.
Public information indicates that Zhang Huizhong, born in May 1969, is a senior economist who has served as Chairman and General Manager of Shanghai Construction Investment Co., Ltd., Chairman of Shanghai Construction Group Investment Co., Ltd., Chairman of Shanghai Construction Real Estate Co., Ltd., Vice Chief Economist and Investment Director of Shanghai Construction Group Co., Ltd., and was appointed as vice president of Shanghai Construction Group Co., Ltd. in June 2023.
Shanghai Construction is a state-owned enterprise in the construction industry in Shanghai, formerly known as the Shanghai Municipal Government Construction Engineering Bureau founded in 1953. According to its official website, Shanghai Construction has the most complete industry chain in the Chinese construction industry, covering construction, design consulting, real estate development, urban construction investment, building materials industry, smart construction, and construction services; its business spans over 150 cities in 34 provincial-level administrative regions in China and over 40 countries or regions overseas; it actively participates in the Belt and Road Initiative; and has constructed a large number of landmark buildings in Shanghai and China, such as the Shanghai Tower, Oriental Pearl TV Tower, and Guangzhou Tower.
In 2025, Shanghai Construction had operating income of 205.996 billion yuan, a decrease of 31.38% year-on-year; net profit attributable to the parent company was 1.237 billion yuan, a decrease of 42.93% year-on-year. Shanghai Construction stated that the decline in performance indicators was mainly due to the downturn in the construction and real estate industries, market pressure, intensified competition, a decrease in the scale of construction, design consulting, building materials industry, urban construction investment, and an increase in asset impairment, leading to a decrease in operating income and profit levels in 2025 compared to the same period the previous year.
According to the official website of the Shanghai Municipal Commission for Discipline Inspection and Supervision, in the past five months of 2026, over ten state-owned enterprise executives have fallen from grace in Shanghai, including Qin Jian, former vice general manager of Shanghai Baokang Electronic Control Engineering Co., Ltd. (May 6); Yang Jianfang, former vice general manager of Shanghai Yuepu Industrial Park Development Co., Ltd. (April 17); Zhu Hua, Party Secretary and Chairman of Shanghai Wan Hong Industrial Investment (Group) Co., Ltd. (March 17); Jin Lingwen, former vice general manager of Shanghai Dongfang Engineering Consultation Co., Ltd. (March 5); Li Shen, General Manager of Shanghai Baoheng Qihang Urban Operation and Management Co., Ltd. (March 3); Zhang Guokun, Party Secretary and Chairman of Shanghai Modern Agriculture Investment Development Group (January 16), and others.