Photo: VCG

Stocks of Hong Kong-listed Gome Retail saw a big drop of 13.78 percent after the company said Wednesday that GOME's former chairman was released from prison.

The drop followed a surge of 33.93 percent stock price increase on Tuesday, which closed at HK$2.25 per share, hitting a six-year high.

GOME Retail Holdings Ltd said on Wednesday that parole probation of Wong Kwong Yu, the controlling shareholder of the electric appliances giant, was completed on Tuesday and Wong's original sentence has been served in full.

Wong, who is also known as Huang Guangyu, a home appliance tycoon, was listed as the richest man in Chinese mainland on the Hurun list for three times in 2004, 2005 and 2008.

He was arrested in 2008 and jailed in 2010 for illegal business dealings, insider trading and corporate bribery. He was originally scheduled to be released in February 2021.

Gome-owned companies represented by Gome Retail have made several eye-catching moves over the past year, including joining forces with e-commerce platforms Pinduoduo and JD.com through the issuance of convertible bonds, bringing in former Baidu senior vice president as the CEO of its own online platform and renamed Gome APP, in a bid to make the company more attractive to the younger demographic.