Chinese developer Future Land says chairman detained, removed from role (updated)

S Enjoy Service

04/07/2019 05:23

* Wang Zhenhua detained for "personal reasons"
    * Wang controls 70% of China's 8th biggest developer
    * Replaced by 31-year-old son
    * Firm says operations normal, shares still dive

 (Adds Thursday share reaction, ownership details)
    HONG KONG, July 4 (Reuters) - Future Land Development
Holdings Ltd  1030.HK  said its chairman has been detained by
mainland police and that the firm has removed him from his
position with immediate effect, sending its shares into a
tailspin.
    China's eighth-largest property developer by sales said late
on Wednesday the Putuo Branch of the Shanghai Public Security
Bureau informed it that Chairman and Executive Director Wang
Zhenhua had been detained for "personal reasons".
    Future Land's Hong Kong-listed shares fell as much as 18.5%
in early Thursday trade, hitting their lowest since Feb. 15.
    Property management unit S-Enjoy Service Group Co Ltd
 1755.HK  was down 16.2%, while subsidiary Seazen Holdings Co
Ltd  601155.SS  fell the maximum-allowed 10% in Shanghai.
    Wang's detention was not related to company operations and
business remained normal, Future Land said in Wednesday's filing
to the Hong Kong stock exchange. It gave no further details.
    Putuo police declined to elaborate when contacted by
Reuters.
    Wang controls about 70% of Shanghai-based Future Land. His
son, 31-year-old non-executive director Wang Xiaosong, has been
appointed chairman of the board with immediate effect, the firm
said.
    Ahead of the announcement on Wednesday, rumours of the
incident sent Future Land stock closing down 23.9%, its biggest
daily percentage decline since listing in November 2012. That
left it with a market value of HK$47.4 billion ($6.09 billion).
    S-Enjoy, formerly Xinchengyue Holdings Ltd, in a separate
Wednesday statement said Wang Zhenhua, who is also a
non-executive director at the firm, had been detained and that
operations remained normal.
    
($1 = 7.7843 Hong Kong dollars)

 (Reporting by Donny Kwok and Clare Jim; Additional reporting by
Cheng Leng in BEIJING; Editing by Anne Marie Roantree and
Christopher Cushing)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))