UPDATE, 2:08 PM: Fosun International chairman Guo Guangchang is back at work and continuing to oversee day-to-day operations of his company. The head of the Shanghai-based conglomerate disappeared for about a week, leaving those in financial circles wondering about the sudden departure. It is known that there has been an ongoing investigation in China into corruption involving another company whose head was sentenced to 18 years in prison, and it was rumored that Guo was picked up for questioning.
Fosun, the Chinese government alleged, reaped financial benefits from the surrounding corruption, but Fosun has publicly refuted those allegations. There was no word of where the chairman has been and no one at Fosun would speak to that. “Everything is back to normal,” said one source who requested anonymity. “He and the company are operating as normal again.”
Studio 8's Fosun Financing Intact Despite Chinese Founder's Disappearance
PREVIOUS, DECEMBER 13 PM: In his first public appearance since his disappearance last week, Fosun International Chairman Guo Guangchang attended a company meeting in Shanghai on Monday, a person at the event told Reuters. Guo received a standing ovation at Fosun’s annual meeting.
Guo’s disappearance initially resulted in suspension of trading and raised concerns that he might be under investigation by the government, and Fosun later said Guo was assisting an inquiry into the chairman’s personal affairs.
When trading resumed Monday, Fosun International and Shanghai Fosun Pharmaceutical Group both dropped more than 10%. Fosun is a major player in the Chinese economy with interests in insurance, banking institutions, and even an ownership stake in Club Med.
Fosun has also become a major player in the entertainment industry and is the principal money behind Jeff Robinov’s Studio 8 venture.
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