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Future Land Development Chair Wang Zhenhua Faces Probe Under China’s Anti Corruption Drive

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January 26
1:26 AM 2016

Future Land Development Holdings Ltd. share prices have been slashed to a three month low. Chairman and controlling share holder Wang Zhenhua has been going through a probe conducted by Changzhou city discipline authorities. Spreading of the news among the investors is believed to act behind the share price fall.

The Shanghai based developer's shares have tumbled 5% in resumed trading and end at HK$ 0.95 in Hong Kong. The price appears to be the lowest since September 7. The share prices have dropped around 13% earlier in the session, according to a report published in South China Morning Post.

Wang may continue taking part in decision makings of the Company's major matters via appropriate means. The investigation conducted by Commission of Discipline Inspection of Changzhou city's Wujin district is of personal in nature and irrelevant with company activities, reports Bloomberg citing a statement of the company addressed to Hong Kong stock exchange.

Wang is the latest victim in a countrywide sweep of investigations amid President Xi Jinping's anti corruption drive. Earlier, Chinese developer Kaisa Group Holdings Ltd. has been probed. Agile Property Holding Ltd.'s founder has also come under scrutiny, reports Canmua.

The statement doesn't clear whether Wang has been under detention. Meanwhile, Moody's has changed the outlook on Future Land Development to negative from stable on Monday. Earlier on Monday, the company has requested for suspending trade of its shares listed in the Hong Kong and Shanghai Stock Exchange.

The negative outlook represents the uncertainty looming over respective entity's operations. Wang Zhenhua has been reported to provide funding support to the real estate enterprise since long.

Moreover, he has been widely acknowledged as the key decision maker in the company's business strategy and execution of its development business. Hence speculations over his probable detention have spread a negative impact among the investors.

Aged around 53 years, Wang has founded Future Land during 1993 in Changzhou, Jiangsu Province. The company has shifted its headquarters to Shanghai in 2009 in a bid to shift development focus from Changzhou to Shanghai and other nearby large cities.

Future Land Development Holdings Ltd. chairman Wang Zhenhua is going through a probe conducted by Chinese discipline authorities. Wang is the founder and major share holder of the real estate company. Following rumors over his probable detention, its share prices have been slashed by around 14% and stands at the lowest since September 7. In recent days, several business persons, politicians are falling prey to Chinese Premiere's anti corruption drive and Wang appears to be one of them.

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