Chinese billionaire aiding probe into stock exchange ‘malpractice’

BEIJING: Prominent Chinese investor and businessman Guo Guangchang was assisting authorities in an investigation, his company said, after earlier reports that he was unreachable sent shares in his company Fosun International tumbling on Friday.

In a filing to the Shanghai Stock Exchange, Shanghai Fosun Pharmaceutical Co, part of his empire, said their non-executive director Mr Guo was able to remain involved in “substantial issues”.

China’s financial watchdog agency has been conducting investigations into alleged malpractice on the country’s stock exchange, with several finance executives disappearing to help authorities with their enquiries.

The billionaire chief executive of Fosun, dubbed China’s Warren Buffett, had been out of contact since Thursday morning, business magazine Caixin had reported. Some social media reports said he was apprehended by police at Shanghai airport.

The South China Morning Post (SCMP) said it had been unable to reach the company’s public relations office, but two other Fosun executives denied the Caixin report, and said the company had been in touch with Mr Guo.

Stocks in Fosun International saw their trading suspended in Hong Kong, after losing 11.4% on the Nasdaq late on Thursday in the United States, following the report of Mr Guo’s disappearance, the SCMP said.

Trading in the affiliated Shanghai Fosun Pharmaceutical was also suspended in Hong Kong.

Both suspensions were requested by Fosun, “pending the release of an announcement containing inside information”, a company statement said.