(Yicai Global) Oct. 17 -- Rumors recently made the rounds that Huang Guangyu, founder of leading Chinese electronics retailer Gome Electrical Appliances Holding Ltd., would have his prison sentence commuted and obtain early release, but a company source disclaimed any knowledge of such information.
An article titled Former Richest Man Will Be Released from Prison went viral on the internet. It echoed an earlier report published by online media claiming the sentence passed on the electronic tycoon had been pared by 21 months for good behavior, with Huang to be released late this year.
Gome denied the rumors, however, stating it had heard nothing about Huang’s release, Sina Finance reported yesterday, citing a source at the firm.
Gome share prices rallied strongly on the news, however. Gome Retail Holdings Ltd. [HK:0493] climbed almost 13 percent to USD0.13 (HKD1.03) per share, while Gome Telecom Equipment Co. [SHA:600898] rose 10 percent to USD1.77 (CNY13.82).
Huang Guangyu, born in 1969 in Shantou, in southeastern China’s Guangdong province, opened the first Gome store in 1987. Hurun Report ranked him as the richest man in China in 2004, 2005 and 2008. The retail mogul was convicted of illegal business activities, insider trading and bribery and sentenced to 10 years’ imprisonment in 2010.