Bottom line: The detention of Fosun Chairman Guo Guangchang could signal a move into the private sector for Beijing’s anti-corruption drive, a move that would put top executives in traditional sectors like finance and real estate most at risk.
Beijing’s 2-year-old anti-corruption drive has taken an unexpected twist into the private sector, with word that one of the country’s richest men and head of the high-profile Fosun Group was taken away by police. There’s very little detail on reasons behind the disappearance of Guo Guangchang, sometimes called the Warren Buffett of China for his investing acumen. But speculation centers on his potential involvement in corruption investigations involving a major figure in his home base of Shanghai.
Up until now, nearly all of the dozens of company executives being investigated for corruption have come from the state-run sector, where officials are much more likely to use their position for personal gain. But corrupt practices like lavish gift giving and bribery are a fundamental part of doing business in China, and there’s little doubt that such practices also occur in the country’s vibrant private sector. Read Full Post…
