Hong Kong  - Two top executives from the Citic Pacific Group resigned Wednesday as an investigation into unauthorized currency bets within the company deepened in Hong Kong.

Shanghai-born Larry Yung, who has strong political ties to China, resigned as chairman in a letter to the board of directors.

Managing director Henry Fan also resigned, saying in view of Mr Yung's resignation, it was appropriate he should also leave.

Their resignations come five days after the offices of Citic Pacific, the Hong Kong-listed arm of China's biggest conglomerate, was raided in an investigation into alleged fraud and false statements by its directors.

The company, part of China's state-owned Citic Group, is under investigation by the Hong Kong Futures and Securities Commission and the Commercial Crime Bureau of the Hong Kong police, for failing to disclose massive losses running to billions of US dollars from bad bets against foreign currency fluctuations in 2008.

Citic Pacific suffered losses totalling around 1.88 billion US dollars by making unauthorized bets on currencies including the Australian dollar only, to see them plunge in value as the US dollar strengthened.

The company is accused of waiting six weeks before reporting the losses sustained in September 2008 to the market, sending the company's share price into free fall.

In a statement issued Wednesday, Citic Pacific's board of directors expressed gratitude and praise for Yung and Fan, who established the company more than 20 years ago.

"They have devoted themselves to the development of the company and made significant contributions," it said. "Their business experience and insight have provided much guidance and wise counsel to the board throughout the years."

Yung, 67, who has been a director since 1990, worked for 14 years with the Ministry of Electric Power in the People's Republic of China before coming to Hong Kong in
1978.

In 2007, he was listed by Forbes magazine as one of mainland China's wealthiest men with a personal net worth of 2.2 billion US dollars.

Fan, 60, who has also been a director since 1990, is a former barrister of law and deputy chairman of Cathay Pacific Airways.

Chang Zhenming, 52, a non-executive member of the board since 2006, will take over as chairman and managing director.

Trading in Citic Pacific shares, which were suspended on Friday morning, are expected to resume Thursday, the company said. (dpa)