Chinese hypermarket giant Sun Art says it lost contact with CEO

BEIJING, Feb 4 (Reuters) - Sun Art Retail Group 6808.HK, one of China's biggest hypermarket operators, on Wednesday said it was unable to contact CEO Li Weiping, who joined the firm two months ago, adding that its chairman would take over daily operations.

In a stock exchange filing, the Hong Kong-listed firm said that to the best of its knowledge, the matter was not related to its business and operations and had no material adverse impact, adding that operations were normal.

The company said day-to-day management would be temporarily overseen by Chairman Julian Juul Wolhardt.

A Chinese retail-focused media outlet, citing unnamed sources, reported on Tuesday that Li was taken away by police to "assist in an investigation." Sun Art called the report "fake" in comment to the Securities Times, a state media outlet.

The company did not immediately respond to a Reuters request for comment.

Sun Art shares slipped as much as 1.3% in early trade on Wednesday, before reversing course and rising 1.3%. The company's shares are down 9.3% so far this year.

Li's unexplained absence is likely to rekindle investor concerns about China's regulatory crackdowns, following the disappearance of several high-profile executives with little explanation in recent years as an intensifying anti-corruption campaign spearheaded by President Xi Jinping continues.

Before joining Sun Art, Li held various positions at Alibaba Group's 9988.HK supermarket chain Freshippo since 2018. Her earlier career included stints at Lotte Supermarket and China Resources Supermarket.

Alibaba last year sold its 78.7% stake in Sun Art to Chinese private equity firm DCP Capital in order to focus on its core e-commerce business.

Several prominent Chinese business figures have vanished from public view. Bao Fan, founder of investment bank China Renaissance Holdings 1911.HK, went missing in February 2023. He was released in 2025 after being detained for more than two years by Chinese authorities, Reuters reported.

Chen Shaojie, founder of Chinese streaming platform Douyu DY8.F, was reported missing in late 2023 before the company later said he had been arrested by police.