Shares related to Fosun Group, one of China's biggest private companies and owner of Club Med, slumped today after a turbulent week in which it announced a profit surge but also the resignation of its CEO and co-founder.
Shares related to Fosun Group, one of China's biggest private companies and owner of Club Med, slumped today after a turbulent week in which it announced a profit surge but also the resignation of its CEO and co-founder.
Shanghai-based Fosun said on Tuesday that CEO Liang Xinjun had resigned from all his posts due to unspecified "health reasons", prompting questions over the direction of a diversified company that has made wide-ranging acquisitions around the world.
Fosun vice president Ding Guoqi also stepped down, saying he needed to devote more time to his family.
Hong Kong-listed shares of Fosun International were down 1.19 per cent in afternoon trading today.
Shares of other Fosun units also lost ground in trading on mainland China's stock markets.
Fosun Group has interests in property, finance, pharmaceuticals, steel and entertainment, and has been aggressively buying assets in Europe and North America.
Among these, in 2015 it emerged the victor in a long-running battle to take over the French holiday resorts group Club Med.
"In the short-term, the (personnel) changes have had slight psychological impact on the firm and its shares," said Dickie Wong, Kingston Securities' Hong Kong-based executive director of research.
"But in the long-run the impact won't be too big because investors will focus on the firm's future. I believe their financial investments overseas, as well as their diversified businesses, have good future prospects."
Fosun announced net profit surged 29 per cent to 10.3 billion yuan (USD 1.5 billion) in 2016, led by gains in its finance, health and entertainment businesses.
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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