NewFuture Land shares tumble in resumed trade after company says chairman ‘being investigated’
Future Land says chairman investigated by mainland authorities for ‘personal reasons’
Future Land Development shares slumped to a three-month low after the company said its chairman and controlling shareholder Wang Zhenhua was under investigation by local discipline authorities.
The Shanghai-based developer’s shares tumbled 5 per cent in resumed trading, ending at HK$0.95 in Hong Kong, their lowest since September 7. Earlier in the session the shares had dropped as much as 13 per cent.
The statement did not make it clear whether Wang was under detention.
Moody's changed the outlook on Future Land Development to negative from stable on Monday.
"The negative outlook reflects the uncertainty over the company's operations and funding support created by the investigation of its key shareholder, Mr. Wang Zhenhua," says Stephanie Lau, a Moody's assistant vice president, adding that Wang has been the key decision maker in the company's business strategy and in the execution of its development business.
The company had requested a suspension in trade of its Hong Kong and Shanghai-listed shares on Friday.