Gome affair shows risks of wealth

In October, Mr Huang was named as the richest person in China, with a net worth of $6.3bn according to the Hurun Report, which compiles lists of the country's wealthy. It was the third time that the 39-year-old had topped the ranking.

In an interview two weeks ago, Mr Huang appeared up-beat about the immediate future for Gome, despite investor concerns about a slowing economy and the company's tight finances.

The Chinese government's fiscal stimulus package, which included talk of tax rebates for farmers, would provide a huge boost to Gome's sales in rural areas. “Basically I think it is very good news for us,” he said.

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