Strange tidings today for Chinese conglomerate Fuson, which halted all trading of shares in the company Thursday following conflicting and unconfirmed reports regarding the whereabouts of company founder Guo Guangchang.
The situation is not entirely clear, but Fosun staff reported to Chinese business magazine Caixin that Guo Guangchang, the 17th richest person in China with an estimated net worth of $5.6 billion, suddenly became unreachable at some point Thursday. Since then, rumors have spread that he’s been arrested by Chinese authorities on corruption accusations. Guo Guangchang was linked earlier this year to the head of a state-owned corporation who was sentenced to 18 years in prison for corruption. Presiding courts openly accused Fosun of benefitting from the corruption, accusations denied by the company and its founder.
Founded in Shanghai in 1992, 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.