This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Party's Over for Luxury Decorator in China

Stocks in this article: IHG MAR HLT

BEIJING (TheStreet) -- Shares in Chinese luxury-goods suppliers fell Tuesday as the Communist Party's campaign against lavish government spending turned against a businessman who made a fortune selling marble and chandeliers for public buildings.

Zhu Xingliang's arrest on bribery charges was announced by his company, Golden Mantis Building Decoration, which for years has been riding a wave of costly building construction projects financed by government agencies eager to flaunt their wealth. It was unclear whether Zhu would continue serving as the company's president.

Leaders in Beijing have been telling the nation's bureaucrats to curb frivolous spending or incur the party's wrath since President Xi Jinping took office in late 2012.

On the Shenzhen Stock Exchange, Golden Mantis shares fell 3.3% Tuesday to close at 19.13 yuan, a competing supplier Guanfu Modern Household Wares lost 1% to end the day at 4.74 yuan and platinum jewelry maker Ming Jewelry declined 3% to close at 23.66 yuan. On the Shanghai exchange, shares in bone china and jade porcelain maker Glarun Technology declined 4.4% to end at 41.53 yuan a share.

Golden Mantis outfits building interiors with crystal light fixtures, rare wood paneling and other upscale accoutrements. In addition to government offices, company customers have included Intercontinental Hotels  (IHG), Marriott (MAR), Hilton (HLT), Sheraton, Westin and Hyatt hotels across China.

The company's major public contracts included interior decorations for the Bird's Nest Stadium built for the 2008 Beijing Olympics and the Hongqiao airport-railway center in Shanghai.

State media called Zhu, 54, the richest man in Jiangsu Province and said he's being investigated for allegedly bribing Nanjing's mayor.

In October, the Communist Party's mouthpiece, People's Daily, reported officials had launched a bribery probe targeting the then-mayor, Ji Jianye. He then became one of more than 10 high-level officials deposed last year by the party for alleged corruption.

Gold Mantis has reported strong growth every quarter since 2011, the year its profit more than doubled. Last year, the company recorded a 31% net profit increase to 1.5 billion yuan on sales of 18.3 billion yuan.

At the time of publication the author had no position in the companies mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs