Future Land dives on chair Wang Zhenhua detention reportBusiness | 3 Jul 2019 8:18 pm
Shares of Chinese property developer, Future Land Development, fell by the most on record on a report that Shanghai police detained the company’s billionaire founder.
The local newspaper has since removed the article from its website.
The stock sank by 24 percent in Hong Kong, wiping out almost US$2 billion in value within minutes. Chairman Wang Zhenhua is currently under investigation in Shanghai for an alleged crime, Xinmin Evening News had said in its report today, citing unidentified people with knowledge of the matter.
The report is also no longer circulating on the publication’s social-media accounts.
Calls to Future Land’s investor relations department were not answered, while the police didn’t immediately reply to a fax and call requesting comment.
Future Land’s dollar bond due 2023 fell by the most since the security was sold in April.
Wang also sits on the boards of Xinchengyue Holdings and Shanghai-listed Seazen Holdings, according to data compiled by Bloomberg.
Xinchengyue shares also sank by a record 24 percent in Hong Kong, while mainland trading was already closed for the day.
Wang’s net worth, the bulk of which comes from his stakes in Future Land and Xinchengyue, dropped by US$1.4 billion today to US$5.2 billion, according to the Bloomberg Billionaires Index.-Photo: Forbes