Zhu Jiusheng, the CEO of China Vanke, was taken into custody by public security authorities on Wednesday, according to a report from state media outlet The Economic Observer. The unexpected development has intensified scrutiny of the real estate giant's financial stability amid a prolonged slump in China's property market.
The Shenzhen-based company, one of China's largest property developers, has not issued an official statement regarding Zhu's detention. Efforts to reach Vanke for comment went unanswered, further fueling uncertainty in the market.
In the wake of the news, volatility surged in the onshore bond market, with Vanke's bond prices fluctuating significantly. Investor concerns over the company's ability to meet looming payment obligations have been exacerbated by the broader challenges facing China's real estate sector.
China's property market has been under significant pressure for over two years, plagued by weak demand, high debt levels, and stalled construction projects. This environment has created uncertainty for many developers, including Vanke, which is now under heightened scrutiny following its CEO's detention.
Born in 1969, Zhu Jiusheng holds a master's degree in economics from Zhongnan University of Economics and Law (1993) and a doctorate in economics from the same university in 2003.
From 1993 to 2012, Zhu worked at China Construction Bank's Shenzhen branch, holding various positions including deputy branch manager, general manager of the credit department, and general manager of the corporate department. Zhu joined Vanke in 2012 and has served as the company's president and CEO since January 31, 2018.
Vanke is one of the largest and most well-known real estate developers in China. In a company announcement made on January 3, 2025, Vanke revealed its contract sales figures for 2024, reporting a total contracted sales area of 18.1 million square meters and a sales value of 246.02 billion yuan. However, compared to 2023, the company saw a significant decline, with contract sales area down by 26.57% and contract sales value dropping by 34.59%.
