Guo Guangchang, hailed as the Warren Buffett of China, who was thought to have gone missing, is actually being detained by police.

Spokespersons for Fosun International, Gou's privately-held conglomerate, confirmed on Friday that the company's chairman is helping authorities with an investigation amidst a wide-ranging crackdown on corruption that has already affected the private sector.

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According to financial magazine Caixin, his staff in Fosun earlier reported that he had gone missing after they failed to contact Guo since Thursday afternoon. Fosun immediately stopped trading its Hong Kong shares after the report surfaced in the media. The company will resume trading on Monday.

The 48-year-old tycoon, nevertheless, is still in contact with his company regarding major decisions.

It is still unclear, though, why the police have detained him.

A source close to Fosun Group earlier told BBC that Chinese authorities requested him to cooperate with them in an investigation.

The source also cleared Gou's name of any anomalies.

"He is not being investigated himself," the source said without divulging any details of the investigation.

Gou's involvement, however, is expected to significantly affect his business, although it is too early to say to what extent the crackdown will affect Fosun's operations.

"Guo is one of the high-profile Chinese entrepreneurs and this incident will raise eyebrows among foreign regulators, as Fosun has been aggressively expanding its global insurance footprint," Sally Yim, senior credit officer at Moody's Investors Service, said.

Last August, Guo was linked to a corruption court case.

BBC Asia-Pacific analyst Michael Bristow said that Guo's business portfolio is a global concern, while Forbes magazine pegs his fortune at $7 billion. Hurun, which monitors the richest people in the country, placed him at No. 17 on its rich list.

Fosun Group's interest is diversified, ranging from media and insurance to real estate and retail. It recently got a controlling stake in the French holiday group Club Med.

TagsWarren Bufet of China, Fosun International