Future Land Plunges on Report Billionaire Chairman Detained

(Bloomberg) -- Shares of a Chinese property developer fell the most on record on a report that Shanghai police detained the company's billionaire founder. The local newspaper has since removed the article from its website.

Future Land Development Holdings Ltd. sank 24% in Hong Kong, wiping out almost $2 billion in value within minutes. Chairman Wang Zhenhua is currently under investigation in Shanghai for an alleged crime, Xinmin Evening News had said in its report Wednesday, citing unidentified people with knowledge of the matter. The report is also no longer circulating on the publication's social-media accounts.

Calls to Future Land's investor relations department weren't answered, while the city's police didn't immediately reply to a fax and call requesting comment.

Future Land's dollar bond due 2023 fell by the most since the security was sold in April. Wang also sits on the boards of Xinchengyue Holdings Ltd. and Shanghai-listed Seazen Holdings Co., according to data compiled by Bloomberg. Xinchengyue shares also sank a record 24% in Hong Kong, while mainland trading was already closed for the day.

Wang's net worth, the bulk of which comes from his stakes in Future Land and Xinchengyue, dropped by $1.4 billion on Wednesday to $5.2 billion, according to the Bloomberg Billionaires Index.

--With assistance from Venus Feng.

To contact Bloomberg News staff for this story: Fox Hu in Hong Kong at fhu7@bloomberg.net;Mengchen Lu in Shanghai at mlu157@bloomberg.net

To contact the editor responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net

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With assistance from Bloomberg