China Property Developer Cancels Rights Issue Amid Missing Chairman Fears

Tom Burroughes

13 October 2014

Mainland China property developer Agile Property Holdings has reportedly cancelled a HK$2.79 billion ($359 million) rights issue amid market rumours that chairman Chen Zhuolin has gone missing.

Shares in the firm, in which Chen and his family are the controlling shareholders, have been suspended since 3 October, according to the South China Morning Post.

According to a filing with the Hong Kong stock exchange, Chen and his family would support any future fund-raising exercise by Agile and stood ready to commit their own financial resources. Agile has denied a report that the company had links to former Chinese security chief Zhou Yongkang, who is under investigation amid Beijing’s anti-corruption drive.