Real estate company loses billions of dollars, CEO resigns

Chinese real estate company Vanke announced on January 27 that CEO Zhu Jiusheng had resigned due to 'health reasons'.

In a statement today, Chinese real estate company Vanke said CEO Zhu Jiusheng had submitted his resignation... for health reasons" and that he "will no longer hold any position in the company", according to AFP.

This photo taken on March 31, 2024 shows residential buildings under construction by Vanke in Hangzhou, Zhejiang province, China.

However, Vanke did not confirm or deny that Zhu had been “taken away” by authorities. The Chinese newspaper Economic Reporter on January 17 quoted sources as saying that Zhu had been “taken away by security officials,” but did not specify whether he had been formally detained.

The Economic Observer article did not specify what crimes Mr. Zhu might be accused of. At the time, the Economic Observer reported that calls and text messages sent to Mr. Zhu and those close to him went unanswered.

Vanke, listed in Hong Kong, is part-owned by the Shenzhen municipal government and was China's fourth-largest real estate company by sales last year, according to research firm CRIC.

Along with other Chinese property tycoons, Vanke has faced a years-long debt crisis and today, in a filing with the Hong Kong Exchange, the company warned of a net loss of about 45 billion yuan ($6.2 billion) last year.

"The company deeply apologizes for this loss and will make every effort to promote business improvement," Vanke stressed in a separate statement, according to AFP.

Source: https://thanhnien.vn/cong-ty-bat-dong-san-lo-hang-ti-usd-ceo-tu-chuc-185250127175126719.htm