Shares in China’s Fosun drop after management reshuffle

SHANGHAI: Shares related to Fosun Group, one of China’s biggest private companies and owner of Club Med, slumped yestrday after a turbulent week in which it announced a profit surge but also the resignation of its CEO and co- founder.

Shanghai-based Fosun said on Tuesday that CEO Liang Xinjun had resigned from all his posts due to unspecified ‘ health reasons’, prompting questions over the direction of a diversi f ied company that has made wide-ranging acquisitions around the world.

Fosun vice president Ding Guoqi also stepped down, saying he needed to devote more time to his family.

Hong Kong- listed shares of Fosun Internat ional were down 1.19 per cent in afternoon trading on Thursday.

Shares of other Fosun units also lost ground in trading on mainland China’s stock markets.

Fosun Group has interests i n proper t y, f inanc e, pharmaceuticals, steel and entertainment, and has been aggressively buying assets in Europe and North America.

Among these, in 2015 it emerged the victor in a longrunning battle to take over the French holiday resorts group Club Med.

“In the short- term, the ( personnel) changes have had slight psychological impact on the firm and its shares,” said Dickie Wong, Kingston Securit ies’ Hong Kongbased executive director of research. — AFP