Beijing (AFP) – The head of one of China’s biggest property firms has been “taken away” by police, state-backed media reported Thursday, as a prolonged housing slump continues to hit the world’s second-largest economy. Zhu Jiusheng, CEO of Vanke, was “taken away by public security authorities,” the Economic Observer reported, citing sources.
Hong Kong-listed Vanke, which is part-owned by the government of Shenzhen, was China’s fourth-largest real-estate firm by sales last year, according to research firm CRIC. It reported a net loss of 9.9 billion yuan ($1.35 billion) in the first half of 2024, with its revenue plunging as home sales slumped.
The Economic Observer reported that “several sources” said Zhu had been taken away, without specifying whether he had been formally detained or what offences he may be alleged to have committed. Calls and messages to Zhu and people close to him had gone unanswered, the outlet said. AFP has contacted Vanke for comment.
The company has been caught in a debt crisis in China’s real estate sector that has left developers in financial trouble. In September, rating agency Moody’s downgraded Vanke’s credit rating to B1, signifying it was “highly speculative.”
© 2024 AFP
