Chinese developer Longfor shares plunge after chairwoman resigns

HONG KONG -Beijing-based property developer Longfor Group Holdings Ltd saw its shares plunge to their lowest price since October 2011 on Monday after its founder resigned, hammering already fragile investor confidence in the firm and the sector.

The shares plummeted more than 40 per cent shortly after the start of trade, but narrowed losses to be more than 20 per cent down by mid-morning. The stock has lost more than 50 per cent so far in October.

The price of one of its onshore bonds dropped 30 per cent and was temporarily suspended from trading.

Longfor has been caught up in a massive selloff of developers' shares and bonds triggered by missed debt payments of peer CIFI Holdings (Group) Co Ltd.

In a filing on Friday after market close on Friday, Longfor said Wu Yajun, 58, resigned as chairwoman and executive director due to age and health reasons, and will continue to support the company as the strategic development consultant.

Chief Executive Chen Xuping, 40, has been appointed chairman alongside his current role which he assumed on March 1, Longfor said, among other changes on the board.

"The board of directors also confirms that the Company's business operation remains stable with a clear development direction," it said in the filing.

The Hang Seng Mainland Properties Index was down more than 6 per cent in Monday morning trade, versus a 0.8 per cent gain in the main Hang Seng Index.