Fosun International is one of the most aggressively acquisitive conglomerates of China. Liang Xinjun and four other people founded this China investment firm in 1992. Xinjun was appointed as the CEO of this Shanghai-based company in the year 2009 but has decided to step down. On Tuesday evening, the company issued a statement regarding the same. This announcement came as a surprise amidst impressive profit reports of one of the largest Chinese privately owned companies. In its statement, the company told the Hong Kong stock exchange that Xinjun resigned for health reasons. Except this, the company released no other information which triggered the curiosity of the stock market.
Liang Xinjun’s net value in the business sector is worth $2.2 billion thus making him one of the most successful entrepreneurs of the country. He was also the vice-chairman of the company. He has been replaced by Wang Qunbin as the CEO. The exchange filing between the two individuals has also taken place. All the formalities took place on Tuesday night which seems like a suspicious thing to do. Handing over the post of the CEO is a time-consuming task. Such decisions require thorough planning and strategizing. Spontaneous actions are hardly successful especially in the matters of jobs with such high responsibilities.
How will the step down affect Fosun International
Apart from the CEO, Senior Vice President Ding Guoqi also resigned in order to dedicate more time to family commitments. Such a surprise reshuffle in the posts of significant authorities with reasons irrelevant to the company has raised concerns about its strategy and functioning. The chairman of Fosun International, Guo Guangchang expresses his shock on Xinjun resigning and further says that as he insisted on leaving, the decision was a joint one between the company and Xinjun. Guangchang believes that the resignation of Xinjun will have a considerable impact on the company but it will be short-term. He did not elaborate on the reasons behind the resignation any further. This statement was a part of the public letter by on the company on its WeChat account on Tuesday.
Guangchang is supposedly hopeful in front of the analysts and reporters in Hong Kong as he claims that the company will turn bad things into good news. He further added that the new management team of Fosun International is full of talent. But sources close to the company have claimed the presence of growing tension between Liang and Guangchang. As there is no confirmation about the news by officials, one needs to believe the given reasons.