The stock of Fosun International is trading once again after the reemergence of its founder and chairman Guo Guangchang yesterday.
Shares in the Hong Kong-based conglomerate took a dive last week after it emerged that Guo, regarded by some as the Warren Buffet of China, had gone missing. Fosun International is the parent of Fosun Property, currently one of China’s most acquisitive property investment firms.
However, he was reportedly present at the company’s annual meeting in Shanghai yesterday and the firm posted an announcement stating that Guo was in fact assisting the Chinese government with “investigations.” Fosun's shares resumed trading following the announcement, although the price of the company's stock continued to fall despite his return. They were priced at HK$11.66 (€1.37; $1.50) a share at the closing bell.
The firm said: “In relation to the recent media reports regarding Mr. Guo Guangchang, the company’s executive director, chairman and the ultimate controlling shareholder, after making inquiries, the company understands that Mr. Guo is currently assisting in certain investigations carried out by Mainland judiciary authorities.”
In its statement, Fosun went on to say that the operations of the company remained normal: “Mr. Guo may continue to take part in decision makings of the company’s major matters via appropriate means. The directors of the company are of the view that this investigation has not posed any material adverse impact on the financial or operation of the Group.”
Fosun has been one of the more active Chinese investment firms in international real estate markets of late. The firm, which made significant corporate investments in London-based Resolution Property earlier this year and in Japan’s IDERA Capital Management last year, was the subject of PERE’s Blueprint interview last year.
In the interview, Xiaoliang Xu, president of Fosun Property, revealed how the firm was aiming to grow its property assets under management from less than $3 billion, at the time of writing, to $80 billion by 2020. To read the interview, click here.