China's Richest Man Vanishes Amid Police Probe

Monday, November 24, 2008

Huang Guangyu, China’s richest man, disappeared several days ago amid a police investigation for alleged share trading violations, Chinese media reported.

Trading in Huang’s Gome Electrical Appliances Holdings was halted Monday on the Hong Kong Stock Exchange. The company issued a statement saying it was making “necessary inquiries” to try to find out what had happened to its founder and controlling shareholder.

It said business was continuing as normal and the company had received no legal notice from the Chinese authorities about Huang's whereabouts.

One source close to Gome told The Times of London that no government department had contacted the company and they had received no notice of any legal investigation into its activities.

Chinese media reported that Huang was being questioned by police for alleged share price manipulation linked to Shandong Jintai Group Co., a pharmaceutical company with shares listed in Shanghai that is believed to be controlled by Huang's brother, Huang Jinshi.

It is not the first time Huang has faced such questioning. He was investigated in late 2006, along with his brother, for alleged financial irregularities involving the use of a loan to speculate in real estate. Huang was later released.