Sun Art CEO's Disappearance Stirs Regulatory Concerns

Sun Art Retail Group is unable to contact its CEO, Li Weiping, raising regulatory concerns amidst China's anti-corruption efforts. Chairman Julian Juul Wolhardt assumes daily operations temporarily. Despite the media reporting that Li was assisting in a police investigation, Sun Art denies these claims, calling them fake.

Sun Art Retail Group, one of China's leading hypermarket operators, announced on Wednesday its inability to contact CEO Li Weiping, just two months after her appointment. The company's chairman will now temporarily manage daily operations.

In a filing to the Hong Kong stock exchange, Sun Art stated that the situation was disconnected from its business activities and had no significant adverse effects. Operations remain unaffected, with interim management by Chairman Julian Juul Wolhardt.

Media reports suggested Li was involved in a police investigation, but Sun Art dismissed these claims as false. The unexplained absence rekindles investor fears regarding regulatory crackdowns as China's anti-corruption campaign under President Xi Jinping continues. This year has seen a 9.3% drop in Sun Art shares, though they rose slightly after the news.

(With inputs from agencies.)