December 11, 2015•Update: December 11, 2015
BEIJING
Companies controlled by a renowned Chinese businessman revealed Friday night that Guo Guangchang has been “assisting investigations”, after his reported disappearance led to them announcing trading suspensions.
The Caixan online newspaper had earlier cited unnamed sources as saying that officials from the Fosun conglomerate had been unable to reach Guo, 48, since Thursday afternoon.
After the report, Fosun companies’ shares were suspended amid speculation about whether Guo -- known for his global investment expansion moves -- had been taken into custody as a corruption suspect or to assist in investigations.
Shanghai Fosun Pharmaceutical said in a statement filed Friday through the Shanghai Stock Exchange that Guo is "assisting judiciary authorities in investigations”.
It added that trading of its shares would resume Monday and Guo would be involved in "important company decisions”.
The Hong Kong-based South China Morning Post had earlier cited two unnamed Fosun officials as saying Guo could make phone calls despite restrictions on his personal freedom.
Seven companies under the Fosun conglomerate -- five listed in the mainland, and two in Hong Kong -- had suspended trading Friday morning.
In Thursday’s session, the Nasdaq-listed shares of Fosun International had ended 11.4 percent lower.
Guo is listed as China’s 11th richest person with a net worth of $6.9 billion, according to Forbes.
His Fosun Group, which began with pharmaceuticals in the 1990s, has since bought other companies in the U.S. and Europe, in sectors such as insurance, travel and leisure.
The Post cited an unnamed well-connected businessman as saying that Guo might be questioned about his connection with two officials who were placed under investigation by China’s anti-graft watchdog.
The two are Shanghai’s vice-mayor Ai Baojun, who the Central Commission for Discipline Inspection announced it was probing in early November, and the Securities Regulatory Commission’s vice chairman Yao Gang.
According to the Caixin report Thursday, a Chinese court found that Guo’s links to a former chairman of a state-owned food and beverages company -- Wang Zongnan, who was handed an 18-year term -- had been “inappropriate”.
The Shanghai court said that Wang had abused his power and pursued profit with Fosun Group, and that Guo had sold two villas to Wang’s parents for below their market price -- allegations denied by Guo.
Guo’s reported assistance in investigations comes at a time when tens of thousands of suspects -- including dozens of high-profile individuals at the top of the Communist Party -- have been investigated under an anti-corruption drive launched in 2013.
In February, the Central Commission for Discipline Inspection said it would target 26 giant state-owned firms this year as part of President Xi Jinping’s campaign.
