Shares in Rongsheng Heavy Industries plunged 6.7 per cent on Tuesday as investors took stock of the shock resignation on Monday night of the Chinese shipbuilding giant’s chairman and founder Zhang Zhirong.

His departure comes at a difficult time for the group, with a separate Zhang-owned company named in an insider dealing probe in the US, ship sales plummeting, profits shrinking and the share price down 80 per cent since its 2010 listing. Read more