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Bank of China (BOC)

Gome saga shows we have not progressed on disclosure

Reading Time:3 minutes
Why you can trust SCMP
Shirley Yam

Yesterday, shareholders of Gome Electrical Appliances Holding finally heard from the company a confirmation of the investigation of its chairman, Wong Kwong-yu, by Beijing police.

This is nine days after the billionaire's arrest, a week after media reports of the arrest, and days after mainland journalists quoting his brother on the investigation.

This is after different explanations about his arrest in the public domain - of bribing a government official for approval to list in Hong Kong, price manipulation of a Shanghai-listed company, and tax evasion, to list a few.

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In between, the Gome board has said only one thing: It is not in a position to 'confirm the accuracy' of the media reports.

Upon confirming Wong's arrest, Gome decided to extend its week-long trading suspension until further notice. No reason was given. So as a Gome shareholder, one is trapped.

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This is not something we would expect to have happened in a market that regulators claim is of international standard. Exchange sources are quick to point to the usual explanations. One, it is the mainland. Two, Gome's trading has been suspended.

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