Shanghai, Jan. 14 - The chairman of state-owned Bailian Group Co, China's biggest retailer and a local partner of France's Carrefour SA, has stepped down and the government will appoint a senior official to replace him, sources briefed on the matter told Reuters on Monday.
They said the Shanghai city government would appoint Ma Xinsheng, deputy head in charge of the city's state-owned assets, to replace Xue Quanrong so the government could keep tight control of Shanghai-based Bailian.
As a result, there would also be a management reshuffle at several subsidiaries of Bailian Group, they added.
Xue would take a job as a deputy head of a think tank, which usually advises the city government on economic and business policy, said the sources, who declined to be identified as they were not authorised to speak to the media before an official announcement, which could be published soon.
Officials at Bailian declined to comment.
Bailian is under pressure to compete with foreign rivals such as Wal-Mart Stores Inc and fast-growing domestic chain stores invested by private businessmen, including Gome Electrical Appliances, which has already become China's top home appliances retailer.
The sources said the appointment of a senior government official to become the new Bailian chairman may reflect Shanghai's ambition to solidify Bailian's leading position in domestic markets through mergers and acquisitions with the city's small rivals and its internal resources.