According to China Securities Journal, the head of Herbalife’s China operations, Li Yanliang has been removed from company this week after 10 years.
The sudden departure of the head of the company’s China operations left traders in a panic on Tuesday. China accounts for around 20% of Herbalife’s overall business.
China Securities Journal reported, based on a Google translation, that Herbalife China President Li Yanliang was removed after a decade in charge. According to the report, the removal was “sudden.”
Herbalife just released its first quarter report earlier this month and said that China-region sales had grown 17%, compared with the worldwide growth rate of 1%.
In even more surprising news, Factset and its Form 4’s, which document insider sales, has revealed that several Herbalife executives sold their entire stakes in the company between May 9th and May 15th.
YTD, Herbalife shares are up 44%.
Disclaimer: We have no position in Herbalife Ltd. (NYSE: HLF) and have not been compensated for this article.