China’s Gemdale Faces Stocks and Bonds Downturn Amid Property Crisis Concerns

         

Summary: Gemdale, a major property developer in China, experienced a significant drop in stocks and bonds following the resignation of its chairman. This adds to the growing anxiety over the country’s real estate sector.

Gemdale, a Shanghai-listed company, witnessed a plunge in its stocks and bonds after the chairman, Ling Ke, resigned due to health reasons. The company announced that Ling would be replaced by company president Huang Juncan, without providing further details about his health concerns. The resignation, according to a separate company statement, was described as a normal transfer of management responsibilities with no significant impact on the firm’s operations, as reported by Chinese media outlet Yicai. However, Gemdale’s onshore bonds maturing in 2024, 2025, and 2026 experienced a decline of 25%, 21%, and 20% respectively before trading was suspended. The company’s shares also dropped by 9% in the morning. The broader debt problems in the real estate sector have led investors to be cautious, fearing the potential financial instability of Gemdale after the sudden resignation of its chairman.

Tags: Gemdale, stocks, bonds, property crisis, real estate sector, resignation, China

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