China stock market

Fosun Pharmaceutical pares loss in Hong Kong; Guo tells SCMP he’s investigating source of rumours

PUBLISHED : Thursday, 06 July, 2017, 1:36pm
UPDATED : Thursday, 06 July, 2017, 6:03pm

Shanghai Fosun Pharmaceutical Group, the listed unit of Chinese billionaire Guo Guangchang’s conglomerate, pared losses of at least 7 per cent on Thursday in Shanghai and Hong Kong trading after the group company dismissed online reports that Guo could not be contacted.

The shares slid 3.7 per cent to 30.19 yuan at the close on the Shanghai Stock Exchange, paring a decline of as much as 8.8 per cent. Trading volumes were more than times the five-day average. Fosun Pharmaceutical’s Hong Kong-traded shares lost 2.6 per cent to HK$29.40 after tumbling as much as 7.1 per cent.

The shares trimmed intraday losses in the afternoon in the two markets after Fosun Group said in a statement on its website around midday that Guo had made a keynote speech while attending a conference in Xi’an on Thursday. It also said that the group’s operations were normal.

The statement described online commentary about Guo’s whereabouts as “purely rumour and vicious slander”. Fosun Pharmaceutical made a similar statement to the Shanghai exchange at the noon trading break.

Guo, who was reached by the Post late afternoon in Shanghai on Thursday, said the issue was being investigated.

“I do not understand where the rumours come from,” Guo said. “We are investigating who spread the rumours.”

Analysts said concerns over Guo’s whereabouts, though unfounded, raised concerns about the company’s longer term growth outlook.

“It looks like that the company is always entangled with rumours and speculation,” said Wang Zheng, chief investment officer at Jingxi Investment Management in Shanghai. “That will raise concerns among investors whether the company is able to become bigger.’’

This was the second time shares of Fosun’s listed units were hit by rumours or speculation over the past month.