Fosun International said Chairman Guo Guangchang, one of China’s best-known entrepreneurs, is assisting authorities with an investigation, after an earlier report said the group lost contact with its billionaire founder.
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The filings followed a report by respected Chinese business news site Caixin that Fosun Group had been unable to contact its chairman, Guo Guangchang, since noon on Thursday.
Rumors have been circulating in mainland social media since yesterday afternoon, including one that said a witness was with Guo on the same flight from Hong Kong to Shanghai, and that the 48-year-old billionaire was taken away by police in handcuffs.
Chinese authorities have also launched wide-ranging probes into the financial sector following a market rout earlier this year when a debt-fuelled bubble – encouraged by officials – burst.
Guo is China’s 17th richest man with a net worth of $5.6 billion.
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.
Stocks in Fosun International saw their trading suspended in Hong Kong, after losing 11.4% on the Nasdaq in the USA late Thursday, following the announcement of Guo’s disappearance, the SCMP reported.
A Fosun International spokesman in Hong Kong told Reuters the firm was operating as normal, declining to comment on the report or Mr. Guo’s whereabouts.
It also owns stakes in numerous listed companies in the pharmaceutical, real estate, retail, steel, mining, insurance and private equity sectors. These have ranged from Portuguese insurer Fidelidade in January to slices of theatre company Cirque du Soleil and holiday operator Thomas Cook.
News that Mr Guo is unreachable prompted many related companies to halt trading.
The Chinese government has been tightening its screws on corruption as several top politicians and businessmen have come under intense scrutiny.
The speculation over his disappearance comes against a backdrop of a number of mysterious cases in the past few months where high profile Chinese executives have gone missing.
The company statement did not clarify whether Guo was the subject of the investigation, or whether he was helping with investigations into others.
Local media reported he was being detained by the Chinese authorities, possibly in connection with corruption investigations.
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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.
