Nov. 22 (Bloomberg) -- Shanghai Fosun Pharmaceutical Group Co., 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. 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.
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