China’s Fosun halts trading on reports chief unreachable

China’s biggest broker, Citic Securities, said on Sunday it was “not able to get in touch” with two top executives Chen Jun and Yan Jianlin, citing local media reports that the two “were suspected of being requested to assist in an investigation”. Guo is assisting an investigation into former former Shanghai vice mayor Ai Baojun, according to people familiar with the situation who asked not to be identified because they aren’t authorized to speak on the matter.

In August, a Shanghai court said Fosun International had questionable and inappropriate ties with Wang Zongnan who was then the president of a state enterprise and who was sentenced to 18 years in prison for embezzlement and corruption.

Fosun quickly issued a statement denying it had received any illegal benefits from its cooperation with the companies Wang headed.

If confirmed, Mr Guo’s case is the latest in a succession of mysterious disappearances or arrests of senior financial executives in mainland China in the wake of a sharp stockmarket rout which has prompted investigations into insider trading and illegal short-selling.

Chinese conglomerate Fosun said its chairman, billionaire Guo Guangchang, is helping Chinese authorities after he was reported initially missing yesterday.

The firm rose by capitalising on waves of economic liberalisation, acquiring assets in steel, pharmaceuticals and property along the way.

Liang said he was handling operations in Guo’s absence, according to comments he made in the micro-blogging site wechat on Thursday night.

Yuyuan Tourist Mart Co Ltd, in which Fosun International holds 29.9 percent stake, acquired 100 percent stake of Hoshino Resorts Group’s ski destination Resort Tomamu located in Japan’s northernmost island Hokkaido.

It has been expanding investments worldwide, with Guo regarded as “China’s Warren Buffett”.

The 48-year-old had been out of contact since Friday, business magazine Caixin reported on its website.

Born in Zhenjiang province, Guo founded Fosun Group in 1992.

Guo’s conglomerate spent $5.7 billion over two years acquiring insurance assets, according to data compiled by Bloomberg.

Alberto Forchielli, founder of private equity firm Mandarin Capital Partners, said: “Should Guo, well-known overseas, be found to be at the centre of a graft investigation, this would be a strong signal to the world that China is serious about its anti-corruption campaign”.

Earlier this year Fosun hatched its own film production company, which has not yet announced any projects.