| Electric appliances chain Gome says founder cleared in probe |
SHANGHAI, Jan. 17 (AP) -- An investigation into an allegedly illegal loan to appliances tycoon Wong Kwong-yu, said to be mainland China's richest individual, has ended, his company said Wednesday.
"The company has been advised by Mr. Wong that the investigation has terminated," Gome Electrical Appliances Holdings said in an announcement posted on the Web site of the Hong Kong Stock Exchange.
The investigation involved a loan allegedly guaranteed by real estate company Eagle Property Group, an investment company indirectly owned by Wong and "taken out by a third party independent of Mr. Wong and his privately held companies who bought certain residential property from Eagle," the announcement said.
The decision to drop the case suggests Wong, also known as Huang Guangyu, and his companies have been cleared of any wrongdoing, the official China News Service said in a report Wednesday.
The financial magazine Caijing reported in October that the investigation centered on a 1.3 billion yuan (US$167 million; ?129 million) loan from Bank of China's Beijing branch a decade ago that allegedly was not repaid.
Forbes magazine has dubbed Wong China's wealthiest person, with an estimated net worth of US$2.3 billion.
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