×
You will be redirected back to your article in seconds

Missing Fosun Chairman Now In New York, Still Doing Deals

Guo Guangchang, the billionaire Chinese businessman at the head of Fosun group, was spotted Thursday evening in New York City.

The news was reported by both the Financial Times and Wall Street Journal, following a Chinese blogger who found himself in the same Midtown restaurant. According to other sources he may travel to Canada to visit the management of Cirque du Soleil.

Guo, one of China’s most prominent businessmen who has built the Fosun group of companies by emulating Warren Buffet, was reported missing over a week ago, causing speculation that he had been detained by authorities investigating corruption. During last weekend Fosun International confirmed that Guo was helping judicial services.

On Monday he reappeared at a company meeting in Shanghai, but the lack of explanation of about why he had been taken in for questioning led many to believe that Guo was only on temporary release. A trip to New York indicates that Chinese authorities have let him keep his passport and do not consider him to be a flight risk.

Guo, who has a personal fortune close to $10 billion, has recently expanded Fosun from pharmaceuticals and insurance into the entertainment sector with stakes in Jeff Robinov’s Studio 8, China’s Bona Film Group, Canada’s Cirque du Soleil and Korean talent management film SM Entertainment.

The welter of speculation caused Fosun International shares to fall after they began trading after a period of suspension. And the company’s shares and commercial paper were downgraded by ratings agencies.

Moody’s Investors Service changed its outlook on Fosun International’s Ba3 corporate family rating to negative from stable. “The change in outlook follows Fosun’s announcement on 11 December 2015 that Mr Guangchang Guo — executive director, chairman and the ultimate controlling shareholder of Fosun — had been assisting in certain investigations carried out by Mainland China’s judiciary,” Moody’s said in a statement.

Already some of Fosun’s deals may be jeopardized. These include  currently in progress bids for Phoenix Holdings, BHF Kleinwort Benson, and Hauck & Aufhauser, a German bank.

However, Guo’s entertainment empire may still be expanding. The Asia Venture Capital Journal reports that: “Shanghai Joy Network, a media and entertainment investment group owned by [Guo], has committed RMB130 million ($20 million) in Series B funding to Modern Sky Entertainment, a concert and festival event organizer in China,” giving Shanghai Joy 10% of the company. They are understood to be planning a RMB3 billion (US$465 million) fund for acquisition of international music assets.

More Biz

  • Plume of black smoke rising from

    Lawsuit Expected Next Week in Response to Universal Music Fire

    A Los Angeles law firm representing several Universal Music recording artists affected by the 2008 fire that destroyed a huge number of master recordings is expected to file a lawsuit as early as next week. King told Variety that he expects to sue for negligence and other torts. He declined to identify his clients, saying [...]

  • Nicholas Sparks

    Nicholas Sparks Responds as LGBT Discrimination Claim Resurfaces

    Nicholas Sparks, the prolific author of romance novels, is facing renewed allegations that he discriminated against gay students at his Christian school in North Carolina. The allegations were first leveled by Saul Benjamin, the former headmaster of the Epiphany School of Global Studies, in a wrongful termination suit he filed in 2014. Benjamin’s suit alleged [...]

  • Tyler the Creator and DJ Khaled

    Inside the DJ Khaled-Tyler, the Creator Chart Battle

    The controversy surrounding the recent chart battle between DJ Khaled and Tyler the Creator — in which a bundle promoting Khaled’s album was disqualified from adding to its sales tally for the May 24 Billboard 200 album chart, allowing the No. 1 spot to go to Tyler’s “Igor” — has been a first-class problem for [...]

  • Cuba Gooding Jr. Diversity

    Cuba Gooding Jr. Charged with Misdemeanor Forcible Touching

    Actor Cuba Gooding, Jr., has been charged with a misdemeanor count of forcible touching following an incident at a nightclub, the New York Police Department said Thursday. Gooding turned himself in to NYPD detectives on Thursday, surrounded by a throng of media. Later in the day, he was arraigned in front of Judge Herb Moses. [...]

  • Contract Placeholder Business WGA ATA Agent

    CAA Challenges Writers Guild of America's Legal Standing in Packaging Fee Lawsuit

    CAA has challenged the Writers Guild of America’s legal standing for bringing forth the lawsuit against Hollywood’s four largest talent agencies over the issue of packaging fees. CAA’s latest legal response to the suit filed by the WGA in Los Angeles Superior Court in April asserts that the guild does not have the right to [...]

More From Our Brands

Access exclusive content