Wang Zhenhua, chairman of Future Land Development Holdings, briefs the media on their global offering press conference, in Hong Kong on November 18, 2012. Photo: Edward Wong
Wang Zhenhua, chairman of Future Land Development Holdings, briefs the media on their global offering press conference, in Hong Kong on November 18, 2012. Photo: Edward Wong

‘Key man risk’ is still rife in Chinese companies, as shown by the US$4.2 billion wipeout in value of Future Land after founder’s arrest in Shanghai

  • Latest scandal shows how investors end up paying a heavy price for the mistakes committed by company executives
  • About 13 per cent of listed Chinese businesses, or close to 400 companies, have a shareholder who owns a stake of 50 per cent or more, according to data compiled by Bloomberg

Wang Zhenhua, chairman of Future Land Development Holdings, briefs the media on their global offering press conference, in Hong Kong on November 18, 2012. Photo: Edward Wong
Wang Zhenhua, chairman of Future Land Development Holdings, briefs the media on their global offering press conference, in Hong Kong on November 18, 2012. Photo: Edward Wong
READ FULL ARTICLE