Trading in Fosun resumes; chairman assisting police with investigation

Trading in the shares of Fosun International, the Chinese conglomerate which owns a number of insurance operations including Ironshore, commenced today at the request of the company after some clarity emerged regarding the whereabouts of the company’s chairman.

Trading in the shares of Fosun were suspended last week after its chairman Guo Guangchang, who is one of China’s richest men, was reported missing.

But Fosun has now made a statement claiming Guangchang, company’s executive director, chairman and the ultimate controlling shareholder, is assisting in investigations being carried out by the judiciary authorities in mainland China.

Fosun went onto say that Guangchang may continue to take part in “decision makings of the company’s major matters via appropriate means”.

It added: “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. The operations of the company remain normal.”

At the request of the company, trading of shares of the Fosun was halted with effect from 9:00am on Friday, 11 December 2015.

Application was made by the company to The Stock Exchange of Hong Kong for the resumption of trading of shares of the company and the convertible bonds with effect from 9:00 am on Monday, 14 December 2015.

Various media reports have also claimed that Guangchang was spotted at the Fosun’s annual company meeting in Shanghai but these are not confirmed.

Fosun Group listed in Hong Kong in 2007. It has interests spanning media, insurance, real estate and retail.

It acquired Ironshore for $1.8 billion (£1.19 billion) in May this year, adding it to an already healthy portfolio of insurance operations in countries including Portugal, Asia and the US. It had also said it was looking to buy more insurance operations.