China Stocks Slump as Report Billionaire Missing Compounds Woes

China’s stocks fell to a five-week low after a Caixin report that billionaire Guo Guangchang was missing added to concerns that slowing economic growth, a weakening yuan and an anti-corruption campaign are clouding earnings outlooks.

The Shanghai Composite Index slid 0.6 percent to 3,434.58 at the close. Closely held Fosun Group, which controls Fosun International Ltd., has “lost contact” with Guo, the magazine said, citing people it didn’t identify. Bonds in Fosun International fell by a record and the company suspended its shares in Hong Kong after the report, while other mainland stocks with ties to Fosun also requested halts. The Hang Seng China Enterprises Index retreated for a seventh day, led by industrial and power companies. The yuan headed for its biggest weekly drop since its August devaluation.

President Xi Jinping has waged a battle against corruption since coming to power, while a probe into this year’s $ 5 trillion stock rout has ensnared officials at the securities regulator, senior staff at Citic Securities Co., and a top fund manager. Data on Saturday will probably show China’s industrial production remained near a six-year low in November, while fixed-asset investment this year slowed to the weakest pace since 2000.

 

Source: Bloomberg

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