Stocks linked to missing Chinese billionaire Xiao Jianhua tumbled Friday as investors ignored a statement saying business at his vast empire was "normal" following reports of his abduction from Hong Kong by security agents.
Shanghai-listed companies controlled by Xiao's Tomorrow Holding dropped by their daily limits in the first trading day in China after the week-long Lunar New Year break.
Chemical company Baotou Tomorrow Technology Co, which already was at risk of being delisted due to poor profits, closed five percent lower, the maximum allowed for companies under such warnings, at 10.17 yuan ($1.48).
Sugar producer Baotou Huazi Industry plunged 10 percent, the daily limit for most companies, to end at 12.17 yuan, while cement manufacturer Xishui Strong Year Co also plummeted 10 percent to 17.54 yuan. However, a statement late Thursday said "production and operations of Tomorrow Holding Ltd and its related companies are all normal". Financier Xiao was last seen at his apartment in Hong Kong's harbourfront Four Seasons hotel, according to reports in the city this week. He was taken by mainland security agents last week, according to overseas Chinese-language media.
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