21 July 2018
Kaisa said its chief executive Jin Zhigang has resigned. Photo: HKEJ
Kaisa said its chief executive Jin Zhigang has resigned. Photo: HKEJ

Kaisa chief executive quits

Troubled Chinese property developer Kaisa Group Holdings said Monday its chief executive has resigned.

Jin Zhigang has quit to devote more time for his “personal career development”, but will remain as executive director, the Shenzhen-based company said in a statement.

Jin followed several other senior executives who quit in December, the Wall Street Journal reported. They include Kwok Ying Shing, the company’s founder and longtime chairman, and the chief financial officer.

Kaisa’s troubles began when Shenzhen authorities blocked its project sales for still unexplained reasons, according to the newspaper, citing market insiders.

Then, the company’s default on a US$23 million interest payment on an offshore bond prompted other creditors to demand repayment and freeze some of its bank accounts, the report said.

Home buyers at Kaisa’s projects that have been blocked have staged protests in Shenzhen, wanting to know what will happen to their investment in the still-unfinished property.

On Sunday, Sunac China Holdings Ltd. agreed to buy two of Kaisa’s units and also acquired majority stakes in two others in a US$385 million deal, Reuters reported.

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A woman stands on an overhead bridge overlooking a Kaisa project in Beijing. Kaisa is selling some of its assets to Sunac China. Photo: Reuters

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