Report on GOME founder’s early release from prison causes stocks to soar
Published: Jun 24, 2020 04:08 PM

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The founder of China’s electronics retailer GOME Huang Guangyu was recently released from prison, Chinese media Beijing Business Today reported on Wednesday citing an unnamed source. 

The news caused the stock price of Hong Kong-listed GOME Retail to soar by more than 20 percent by Wednesday noon compared with the previous day.

Meanwhile, the share price of Gome Finance Technology Co, listed on the main board of the Hong Kong Stock Exchange, surged more than 60 percent. Wednesday is the last working day for the stock exchange in Hong Kong before the upcoming three-day Dragon Boat Festival holiday. 

Huang was sentenced to serve 14-year in prison in 2010 due to illegal business operations, insider trading and corporate bribery. The prison term started on November 17, 2008, and was originally set to end on November 16, 2022. 

While serving his prison terms, Huang obtained two reductions in his prison terms: one by 10 months in 2012 and another 11 months in 2016. 
The report did not contain information on why he was released before February 16, 2021, the new date for his release after the reductions in sentences. 

The company may release further information on Wednesday night, Beijing Business Today said. 
On June 18, a recent Chinese online shopping festival, the Gross Merchandise Volume of GOME grew 73.8 percent year-on-year. 

Global Times