Top Chinese Tycoon Guangchang Uncontactable, Reports Say

Now, Fosun International – one of China’s most prominent asset management firms – has said in a statement to the Hong Kong stock exchange that its shares have been suspended.

There were unconfirmed reports on Chinese social media that Guo was detained by police at a Shanghai airport.

These have ranged from Portuguese insurer Fidelidade-Companhia de Seguros in January to slices of theater company Cirque du Soleil and holiday operator Thomas Cook Group PLC.

Fosun and its pharmaceutical unit suspended trading of their shares in Hong Kong, citing “the release of an announcement containing inside information”.

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

Mr Guo is one of China’s most recognisable investors at home and overseas with a fortune of $US7.8 billion, according to the latest Hurun rich list.

In China’s state-dominated economy, many entrepreneurs make deals with officials or state industry managers to gain government licenses, contracts or financing, said Zhang Tianyu, a specialist in corporate governance at the Chinese University of Hong Kong.

A Chinese billionaire who was reported missing has been caught up in an investigation by Chinese officials, his company said Friday.

The Caixin business magazine first reported Guo missing late on Thursday night, saying that he had not been contacted since midday on Thursday.

China’s biggest brokerage, CITIC Securities Co Ltd, said on Dec 6 that it wasn’t able to contact two of its top executives following media reports that they had been asked by authorities to assist in an investigation.

Some previous cases appeared to be linked to a campaign against corruption launched by President Xi Jinping in 2013. Observers noted that the statement was signed by Fosun International CEO Liang Xinjun rather than Guo himself.

According to Caixin, Guo was named in a court verdict on Wang Zongnan, head of state-controlled Shanghai retailer Bailian, who was sentenced to 18 years in prison for embezzlement and bribery in August.

“Investors are anxious that any negative news about Guo Guangchang might cause severe financing problems for the privately-owned company”, said a high-yield bond trader. He is also a delegate to the Chinese People’s Political Consultative Conference.

The disappearance has reignited speculation that Guo may be implicated in a corruption investigation.

“Chinese markets were spooked by the “disappearance” of Fosun’s chairman, quite likely (to do) with China’s anti-corruption department”, market analyst Angus Nicholson said.