Fosun International released a statement to the Hong Kong stock exchange stating that Chairman Guo Guangchang is now assisting investigators after reports appeared in a Chinese daily stating that employees at the company had been unable to contact Guo. Tina Law, a spokeswoman for Fosun, declined to confirm reports that Guo could not be reached as it was “sensitive information that affects stock prices”, but told AFP that the company’s operations were “all normal”.
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Another unit, Fosun Pharmaceutical, were also suspended from trading while several other Fosun Group subsidiaries also halted in Shanghai.
Guo had gone missing on Thursday, spurring speculation in the Chinese media that he was helping with a government investigation into former Shanghai vice mayor Ai Baojun, according to people familiar with the situation who asked not to be identified.
Liang stressed in the conference call that it is just a routine judicial procedure for case investigation, while Guo is just assisting in investigation.
Guo was cited by a Shanghai court in August as being linked to the chairman of a state-owned supermarket chain who was sentenced to 18 years in prison on corruption charges.
Zhang Xun, president of the Agricultural Bank of China, and well-known fund manager Xu Xiang have also been detained, Chinese state media have reported.
Caijing magazine earlier reported that Guo had returned home.
Guo’s temporary detainment is the latest puzzling development in China’s business community after a series of mysterious incidents involving senior executives. It recently took control of French holiday group Club Med.
An extended investigation of Guo, if it happened, could affect Fosun’s access to funding and acquisitions the firm is yet to complete, Mr Lu wrote.
Headquartered in Shanghai, Fosun’s initial success came from pharmaceutical and real estate investments.
The statements signed by Guo himself had said that trading of the Shanghai and Hong Kong-listed shares would resume Monday.
The 48-year old has built up an overseas empire of industrial companies in addition to a host of insurance, banking and asset management firms.
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Fosun International posted a 24% rise in profit for the year to December 2014 to 6.8bn yuan ($1.1bn). He is a delegate to the Chinese People’s Political Consultative Conference, a largely ceremonial advisory body to China’s parliament, and has amassed a personal net worth of US$5.7 billion, according to Forbes.
