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Police investigating Gome chairman

By Tuo Yannan (China Daily)
Updated: 2008-11-26 11:52

Huang Guangyu

Beijing police have confirmed rumors that Gome's chairman Huang Guangyu was under investigation but would not disclose details, Beijing News reported.

The company, one of the largest and best known retailers of electrical appliances on the mainland, has been troubled by the rumors in the past several days.

The China Securities Regulatory Commission said that it played "a supporting role" in the police investigation.

It was reported on www.cnstock.com that at least one bank has conducted a review of loans to Gome.

In the early released quarterly report, Gome's profit for the nine months to Sept. 30, 2008 surged more than 110 percent from a year earlier period, to 1.64 billion yuan after sales of 36.4 billion yuan ($5.33 billion), up 20.04 percent.