(Yicai Global) April 1 -- Stocks in Gome surged in trading today amid rumors online that the Chinese appliance maker's founder could be let out of jail ahead of schedule.

Gome Retail [HKG:0493] soared nearly 20 percent intraday before retreating. Shares in the Beijing-based unit were 6.85 percent higher at HKD0.78 per share (USD0.10) as of 3.00 p.m while Gome Finance Technology [HKG:0628] was up 12.31 percent at HKD0.73. Trading of Gome Telecom Equipment [SHA:600898] closed early after it hit the maximum allowed daily increase on China's mainland markets. It traded 9.96 percent higher at CNY10.27 (USD1.53).

The surge came after rumors emerged online that founder Huang Guangyu could be released one year earlier than expected. He was sentenced to 14 years in 2010 for illegal business operations, insider trading and bribery, and had to pay CNY800 million (USD119.1 million) in fines.

His sentence has been reduced twice with a release date of Feb. 21, 2021 set.

Editor: William Clegg