Fosun Pharma Rebounds After Denying Chairman Arrest Rumors

November 23, 2013 Leave a comment

Fosun Pharma Rebounds After Denying Chairman Arrest Rumors

Shanghai Fosun Pharmaceutical Group Co. (2196), a maker of modern drugs and traditional Chinese medicine, rebounded in Shanghai trading after the company’s parent denied speculation that its Chairman Guo Guangchang had been detained. The rumors are “unfounded,” parent Fosun International Ltd. (656) said in an e-mailed statement. The company will take all necessary steps to get to the bottom of the situation, according to the statement, which cited Guo. Fosun Pharma shares traded 3.1 percent lower at 18.04 yuan as of 2:41 p.m. local time, after earlier tumbling as much as 10 percent, the worst intra-day slide since October 2009. “The rumor of the chairman being arrested is probably the main reason affecting the company’s shares,” said Sam Chi Yung, a strategist at Delta Asia Securities Ltd. in Hong Kong. “This kind of rumor affects stock prices quite a lot.” The 21st Century Business Herald reported the rumors that Guo had been barred from leaving Hong Kong on its website. Guo was in Beijing visiting China Datang Corp. Chairman Chen Jinxing today, the company posted on its official Weibo page after the rumors surfaced.

Natasha Khan in Hong Kong at +852-2977-4630 or nkhan51@bloomberg.net

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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