China Overseas Land reassures investors after CEO’s sudden resignation
Turnover in leadership sparks concerns over company’s ongoing deal to acquire Citic Group’s mainland residential development business
China Overseas Land and Investment (COLI) sought to reassure investors following the surprise resignation last week of its chairman and chief executive Hao Jianmin, which sent the company’s share price tumbling.
Former senior vice president Xiao Xiao, who was elected chairman and appointed chief executive officer in Hao’s place, told reporters on Monday that the company’s operations are running normally.
When asked about drop in COLI’s shares since Hao’s resignation, Xiao said there is “no need for shareholders to worry, since everything with the company is fine”.
After the announcement to the Hong Kong exchange last Thursday, the company’s share price fell 3.3 per cent to HK$22.00.
It has rebounded slightly since to HK$22.05 at Monday’s close.
While the abrupt leadership change sparked concerns for COLI’s ongoing acquisition of China International Trust and Investment Corporation (Citic) Group’s mainland property assets, Xiao said that as far as he knows there have been no changes to the deal.
“The merger has almost entered the final stage,” Xiao said.