Gome shares suspended as it confirms chairman's detention

Shares of China’s largest electronics chain, Gome, were suspended in Hong Kong on Monday as the company sought to verify reports that its chairman, Huang Guangyu, had been detained in an official investigation of share price manipulation, Reuters reported. Caijing reported over the weekend that Huang, who was ranked as China’s richest man in 2008 according to the Hurun Report, was taken into custody on Wednesday in connection to an investigation into stock movements of Shanghai-listed pharmaceutical and medical equipment firm SD Jintai. Gome said it had received no notice or legal documents related to any allegations against Huang. Gome reported 24% earnings growth in the third quarter, though its stock has dropped 78% this year.