Chinese property giant Vanke warns of huge loss, CEO resigns
Source: AFP
Indebted Chinese property giant Vanke said Monday that its CEO had resigned due to "health reasons", after state-backed media reported he had been taken away by authorities.
The company also warned on Monday of a net loss of approximately 45 billion yuan ($6.2 billion) last year.
Chinese outlet the Economic Reporter this month cited sources as saying that Zhu Jiusheng had been "taken away by public security authorities", but did not specify whether he had been formally detained.
Vanke has not confirmed Zhu's detention but said in a statement on Monday that he "has applied to resign... owing to health reasons".
Zhu "will no longer hold any position within the company", the firm said.
Hong Kong-listed Vanke is part-owned by the government of Shenzhen and was China's fourth-largest real-estate firm by sales last year, according to research firm CRIC.
Alongside other real estate titans, it has staggered through a years-long debt crisis, and on Monday in a filing at the Hong Kong Stock exchange warned of a net loss of approximately 45 billion yuan last year.
"The Company deeply apologises for the performance loss and will make every effort to promote business improvement," it said in a separate statement.
Two other top executives -- chairman of the board Yu Liang and company secretary Zhu Xu -- had left their positions "due to work adjustments" but would continue in other roles, according to the company.
The Economic Observer article did not specify what offences Zhu may be alleged to have committed.
It reported at the time that calls and messages to Zhu and people close to him had gone unanswered.
Vanke did not respond to an AFP request for comment following the publication of the article.
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Source: AFP
