Compiled by Caijing Staff
From Caijing Online

China's top electronics retailer Gome Electrical Appliances (HKSE: 00493) confirmed on November 28 that its chairman and controlling shareholder, Wong Kwong-yu, is currently under investigation by Beijing police for his suspected involvement in economic crimes.

The company's chief financial officer, Zhou Yafei, is also a suspect in Wong’s case, said Gome. 

With its top brass out of rotation, Gome has appointed its chief executive officer, Chen Xiao, as acting chairman to insure that business and operations will not be affected.

Internal auditors have found no evidence that Wong embezzled company capital or assets. Nonetheless, Gome has set up a special operations team to closely monitor and assess the impact of Wong’s case on the company's financial status and operations.

Shares in Gome have been suspended from trading on the Hong Kong stock exchange since November 24. 

Caijing learned that Wong Kwong-yu was detained November 19 on alleged share-price manipulation involving Shandong Jintai Group, a pharmaceuticals and medical equipment company controlled by Wong’s brother Wong Chung-yam. 
 

With 43 billion yuan in assets, Wong Kwong-yu was ranked first on the Hurun Report’s annual list of China’s wealthiest individuals, which was released last month. He owns 35.55 percent of the Hong Kong-listed Gome, which has a market value of about 14 billion yuan.