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Chinese developer Kaisa appoints new CEO, two directors quit
[HONG KONG] Hong Kong-listed Kaisa Group Holdings Ltd said on Thursday it has appointed Zheng Yi, 34, as chief executive with immediate effect, in the latest management reshuffle at the debt-laden Chinese developer.
The change comes two weeks after larger rival Sunac China Holdings Ltd withdrew a takeover bid for Kaisa, renewing investor uncertainty over the developer's ability to repay almost us$11 billion in debt.
Mr Zheng joined Kaisa in July 2007 having worked at another developer, the company said in a statement.
It also said Ye Lieli resigned as an executive director and vice chairman, and that Jin Zhigang resigned as an executive director. Both aimed to devote more time to "other business commitments," Kaisa said.
Kaisa bonds were trading unchanged at 64/66 across maturities on Thursday.
In March, Kaisa said it expected to run out of liquidity in the first half of 2015.
But analysts said the scrapped Sunac deal may indicate improvement in Kaisa's finances since authorities lifted a sales ban on the developer earlier this year, and since Kaisa reinstated shareholder and founding chairman Kwok Ying Shing.