A new phenomenon is emerging as a result of China’s real estate market, which has been in recession for a long time and has not yet found any answers.

Recently, many founders of famous Chinese real estate companies have resigned for different reasons.

At the end of last week, Longfor Group Holdings’ Wu Yajun resigned from the executive director and the chair position. Previously, in September, Co-Founder and Chairman of SOHO China, Pan Shiyi, resigned.

Kakei Lam, a fund investment officer at Metaverse Securities, commented that “It’s very likely that we will see more mainland property founders leaving important roles in their firms.”

Lam argued that “The golden age of Chinese property is gone, and they probably don’t see too much they can do to help.”

Wu Yajun’s resignation sent Longfor’s stock price plummeting earlier this week. Despite the fact that the Wu family spent nearly 30 million Hong Kong dollars (nearly 4 million USD) to buy shares of Longfor to strengthen investors’ confidence in this company.

Bloomberg said that Wu’s resignation only increased concerns for Longfor, which has the highest credit rating among private companies in China. 

Wu’s failure in buying Longfor’s shares to maintain investor confidence has shown that intervention by famous individuals cannot be relied on to prevent the crisis on a national scale.

Once China’s richest woman, Wu has lost two-thirds of her fortune this year and is no longer on Bloomberg’s 500 billionaires list.

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