Stock investors heaved a sigh of relief as Agile Property announced its chairman had been released from house arrest and returned to work on Monday.

Embattled mainland developer Agile Property has gained some breathing space over its bank loans by agreeing to go ahead with a delayed rights issue, easing immediate concerns about its fate following the detention of chairman Chen Zhuolin.

Agile Property Holdings announced a reduced rights issue to raise funds from a wary market amid signs that the Communist Party's top anti-corruption agency is now investigating the beleaguered company.

Agile Property Holdings is no stranger to scandal, but the detention of its chairman and founder on the mainland amid allegations of corruption has raised the heat on the Guangdong-based developer to unprecedented levels.

Confirmation that Agile Property chairman Chen Zhuolin has been detained in China has deepened investors' concerns over the cash-strapped developer's ability to repay a US$475 million offshore loan that is maturing in December.

Beleaguered mainland developer Agile Property yesterday called off its HK$2.8 billion rights issue, after Standard & Poor's put its long-term credit rating on negative watch for lack of explanation about its share suspension and growing refinancing risk.