Bars no barrier for tycoon to rake in profits

Being behind bars has not stopped the founder of a Chinese appliance seller from booking gains approaching $1 billion in Hong Kong's surging stock market.

Huang Guangyu, the businessman jailed in 2010 for bribery and insider trading, has seen the value of his stake in Gome Electrical Appliances Holding Ltd more than double to about $900 million since April as Chinese mainland investors take advantage of reduced trading restrictions and pour money into the Hong Kong bourse.

The Beijing-based electronics retailer was, as of the close of trading on Wednesday, one of the Hang Seng Composite Index's best-performing stock this quarter since the H-share rally began April 8. The company was boosted by perceptions that it is undervalued compared with rivals, according to Citigroup Inc and CCB International Securities Ltd.