CSRC details investigation of Huang Guangyu

Further details emerged on Friday night regarding the investigation of Huang Guangyu, founder of electronics retailer Gome and one of China’s wealthiest people, for suspected share manipulation, the Wall Street Journal reported. The China Securities Regulatory Commission said it was looking into the unusual movements in the share prices of appliance services company Sanlian Commercial and Beijing Centergate Technologies, a developer. The two small companies, which are listed in Shanghai and Shenzhen respectively, have in the past been cited in the Chinese media as possible acquisition targets for Gome. It was said Huang wanted to obtain a mainland listing by taking over an already listed company. Other reports on Friday cited regulators as saying Beijing Pengrun Investment, a private company substantially controlled by Huang, was involved in irregular asset restructurings of Sanlian and Centergate. Two other people, including Huang’s elder brother, have also been detained in connection with the investigation.