Police 'detain' Gome boss

(China Daily)
Updated: 2008-11-25 07:21

Beijing police have detained Huang Guangyu, owner of the mainland's biggest home appliance retail chain, media reports said.

Huang's company Gome issued a statement Monday, saying the company cannot confirm the information.

Shanghai-based China Business News quoted unnamed sources as saying Huang was in custody of the Beijing police.

A police press officer declined to comment on the reports when contacted by China Daily.

Huang Guangyu

Sources close to Beijing police said an investigation order might have come from more senior authorities.

The website of Caijing magazine said on Sunday that Huang is being investigated for stock manipulation of Shanghai-listed Jintai Co Ltd, but gave no further details.

Jintai is controlled by Huang's brother, Huang Junqin. The company's stock price rose by 450 percent within 30 trading days in July and August last year. It fell to 2.31 yuan on Friday from a high of 26.58 yuan on Aug 31, last year.

Trading in stocks of Gome in Hong Kong, Shanghai-listed Jintai, and Shenzhen-listed Beijing Centergate Technologies Co Ltd, which is also controlled by Huang, were all suspended Monday.

Gome said in the statement filed with the Hong Kong Stock Exchange Monday that "the company is not in a position to confirm the accuracy of the information" and trading will be suspended indefinitely.

The stock price of Gome plunged almost 14 percent to HK$1.12 last week, while the Hang Seng Index fell by 6.8 percent.

South Korea's Yonhap news agency quoted sources with South Korean electronics companies, which supply Gome, as saying that the firm's operations have entered into a "state of emergency".

Gome said in its financial results for the first three quarters, also released Monday, that its net profits rose by more than 110 percent to 1.59 billion yuan.

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