Party’s Over for Luxury Decorator in China

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.

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Party's Over for Luxury Decorator in China