The stock and bond prices of China’s Gemdale (600383. SS) fell on Tuesday following the departure of its chairman, making it the most recent significant property developer affected by the country’s real estate market turmoil.
On Monday evening, Gemdale, a Shanghai-listed firm, stated that company president Huang Juncan would take over for Ling Ke, 64, who had left due to health concerns.
The medical explanations were not given in detail. According to a different business statement, Ling’s departure was a typical transfer of management duties. According to a report by the Chinese media source Yicai on Tuesday, it would not significantly affect the company’s operations.
Before being taken off the market, the value of Gemdale’s onshore bonds with maturities in 2024, 2025, and 2026 fell by 25%, 21%, and 20%, respectively.
The stock of the firm fell 9% in the morning. Until a move reaches 10%, shares of Chinese businesses with mainland listings are not taken off the market. Given the wider debt issues in the industry, investors were not taking any chances, according to Ting Meng, a credit analyst at ANZ Bank China.
“Investors are worried about Gemdale’s financial condition as the resignation of its chairman was a surprise,” she stated.
Gemdale did not immediately answer a request for comment from Reuters. According to the independent research company China Real Estate Information Corp., it was the eighth-largest developer in China in 2017.
In its annual report, released in April, the firm stated that its financial fundamentals were solid and had revenues of 221.8 billion yuan ($30.3 billion) the previous year.
