Mainland property developers Sunac China has abandoned its HK$4.55 billion bid for a 49 per cent stake in troubled Shenzhen developer Kaisa, ending months of negotiation and stoking questions about its future. “After careful consideration of all the circumstances surrounding the share purchase, the board and the sellers decided not to proceed with the share purchase,” Sun Hongbin, the chairman of Sunac China said in a statement to the Hong Kong stock exchange on Thursday. The company gave no reason for the withdrawal of their bid. The reaction in the market was immediate. Sunac China shares dropped sharply after the mainland property developer withdrew its takeover bid to acquire a 49 per cent stake in Shenzhen-based developer Kaisa. Shares of Sunac China tumbled almost 6 per cent at one stage on Thursday before giving up 4.4 per cent to trade at HK$9.33 at 9:51am. Sunac China resumed trading on Thursday after the shares were suspended from trading since May 15. Morgan Stanley has tendered its resignation as a financial advisor in the terminated deal, according to the statement. Shares of Kaisa, which was the first Chiense property firm to default on its overseas bonds, remains suspended. Kaisa first drew attention in early December, when Shenzhen government imposed a ban on sales of some of its property projects in the city. As part of the termination agreement, Sunac China said the sellers shall refund HK$1.1625 billion, half off the pre-payments, before May 29, and the remaining HK$1.1625 billion together with interest should be returned no later than December 28. Sunac China said Kaisa’s chairman Kwok Ying-shing has provided personal guarantees to ensure the refund obligation and the termination of the share sale. Kwok Ying-shing, who resigned as chairman of troubled mainland developer Kaisa some three months ago, returned to the post on April 13. On May 7, Moody’s Investors Service upgraded their credit outlook for Kaisa Group Holdings to "positive" from "review for upgrade". The ratings agency also affirmed Kaisa’s Ca corporate family and senior unsecured debt ratings. A Ca rating indicates likely or very near default with some prospect of recovery of principal and interest.