Fosun Pharmaceutical dropped 5.83 per cent to 23.74 yuan in Shanghai and dived 10.44 per cent lower to HK$22.30 in Hong Kong. Fosun International, of which Guo is founder and chairman, has major shareholdings in Jeff Robinov’s Studio 8, Bona Film Group, Cirque du Soleil, and Korea’s SM Entertainment.
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According to the Caijing business magazine, which initially reported his apparent arrest, he “returned home safely” following questioning.
Trading in the shares of Fosun were suspended last week after its chairman Guo Guangchang, who is one of China’s richest men, was reported missing. An extended investigation of Guo, if it happened, could affect Fosun’s access to funding and acquisitions the firm is yet to complete, Lu wrote. A Fosun spokesman in Hong Kong had declined comment on the report or Mr. Guo’s whereabouts.
At the request of the company, trading of shares of the Fosun was halted with effect from 9:00am on Friday, 11 December 2015. The bonds had tumbled by a record on Friday.
Fosun International, the parent company of Guo’s various holdings, was listed on the Hong Kong Stock Exchange in 2007.
China’s biggest broker, Citic Securities, said on Dec 6 it was “not able to get in touch” with two top executives Chen Jun and Yan Jianlin, citing local media reports that the two “were suspected of being requested to assist in an investigation”.
Mr Guo was linked to a corruption court case in August.
Guo Guangchang, the billionaire chairman of Fosun International and one of Chinas most famous businessmen, was earlier said to be out of contact with his company.
“It is mostly about his personal affairs”, Mr. Wang said, when asked whether the probe was related to the company or Mr. Guo personally. “Our investments are worldwide, but our foundation remains in China”. He said that unusually favorable arrangement reduced the amount of capital Fosun had to tie up in the company while making it a partner of state managers. “But the fact that Guo is showing up physically is a positive sign”.
Mr Guo’s conglomerate spent $5.7 billion over two years acquiring insurance assets, according to data compiled by Bloomberg.
In the United States, it owns Meadowbrook Insurance Group Inc. and 20 percent of insurer Ironshore Inc.
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Fosun has raised $2 billion so far this year and was a eyeing a $500 million to $800 million bank loan this month which was separate from the $700 million credit line, bankers said.
