China Resources on drive to win over local cadres in wake of graft scandal

China Resources Holding's new chairman has met with at least 10 provincial governments since taking control six months ago - a charm offensive that is helping the state-owned conglomerate move past a major corruption scandal.

In the wake of an investigation that has ensnared former chairman Song Lin and six other executives, Fu Yuning, who holds a rank equivalent to vice-minister in the central government, vowed that the conglomerate would emerge from the scandal like "a phoenix arising from the ashes".

The meetings, many of which have involved Fu travelling to the provinces, have seen him warmly chatting with leading politicians as well as promising new and often big sums in investment, according to promotional photos and material released by the company.

The campaign by the politically connected Fu, formerly chief of China Merchants Group, another state-controlled conglomerate, has shored up investor confidence and underscores the strong government and bank support that state-owned enterprises can call on.

"It seems Fu Yuning is doing the right things," said Xu Yinhui, investment manager at brokerage Guotai Junan Securities in Shanghai.

"He has been boosting internal controls to reduce the chances of corruption while securing different types of support from local governments - which I think should be positive for the long-term development of the company."