July 4, 2019 / 1:20 AM / 13 days ago

Chinese developer Future Land says chairman detained, removed from role

HONG KONG, July 4 (Reuters) - Future Land Development Holdings Ltd said late on Wednesday its chairman and executive director has been detained by mainland police and that the Chinese developer has removed him from his position with immediate effect.

The Hong Kong-listed firm said it had received notice from the Putuo Branch of the Shanghai Public Security Bureau informing it that Wang Zhenhua had been detained for “personal reasons”.

Wang’s detention was not related to the company’s operations and its business remained normal, Future Land said in a filing to the Hong Kong stock exchange late on Wednesday. No further details.

The firm said it had appointed non-executive director Wang Xiaosong as chairman of the board with immediate effect.

Shares of Future Land, which has a market value of HK$47.4 billion ($6 billion), plunged as much as 27.3% on Wednesday amid rumours of the development.

The stock later trimmed losses to close 23.9% lower in its biggest daily percentage decline since listing in November 2012.

Also late on Wednesday, S-Enjoy Service Group Co Ltd , formerly Xinchengyue Holdings Ltd, said in a separate statement that Wang Zhenhua, also a non-executive director at the Property management services firm, had been detained and that the firm’s operations remained normal.

S-Enjoy’s stock ended Wednesday down 23.7%.

$1 = 7.7972 Hong Kong dollars Reporting by Donny Kwok; Editing by Anne Marie Roantree and Christopher Cushing

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