China Jinmao Shares Fall 7.7% as Chairman Probed by Authoritiesby
Cai Xiyou investigated for "serious disciplinary actions"
Cai is latest Chinese property developer in countrywide probe
China Jinmao Holdings Group Ltd. declined by the most in almost six months after the company said Chairman Cai Xiyou is being investigated by Chinese authorities for "suspected serious disciplinary violations."
The mainland property developer’s shares fell as much as 7.7 percent on Thursday, the biggest intraday decline since Aug. 24, as the market reopened in Hong Kong after a break for the Chinese Lunar New Year holiday. A gauge of property stocks on the Hang Seng Index fell as much as 3.3 percent in early trading.
Cai, who is also president of Sinochem Group, is the latest Chinese executive caught up in a countrywide crackdown on corruption. Future Land Development Holdings Ltd. disclosed last month that Chairman Wang Zhenhua was being probed by Changzhou city authorities, and said on Wednesday that he has returned to work. Last year, Chinese developer Kaisa Group Holdings Ltd. was included in a government probe, and Agile Property Holdings Ltd.’s founder has also come under scrutiny.