Financial Gang of 4 Saga Over

SCMP: Chinese developer Zenith withdraws 1.26b yuan action against Founder

Beijing Zenith Holdings and Founder Group appear to have put their dispute behind them, after top Founder Group executives were dismissed and questioned by mainland authorities.

Zenith, a mainland property developer, has withdrawn its 1.26 billion yuan (HK$1.59 billion) lawsuit against Founder Securities, a Shanghai-listed subsidiary of Founder Group. Both Zenith, the second-largest shareholder of Founder Securities, and Founder Group have called off their dispute over the composition of Founder Securities' board of directors and board of supervisors.

On January 4, Founder Group chairman Wei Xin, chief executive Li You and president Yu Li were asked to assist with an investigation by the mainland authorities. All three had been replaced, Founder Group announced earlier. The investigations are believed to be linked to the investigation of Ma Jian, a deputy head of the state intelligence agency.