HONG KONG, April 11 Reuters China Vanke39;s shares and dollar bonds dropped on Thursday after SP stripped its investmentgrade status and the developer confirmed reports that an executive was being investigated, adding to woes for the embattled property sector.

Vanke39;s Shenzhenlisted stock closed down 1.8 at 7.4 yuan after dropping in early trade to 7.31 yuan the lowest since May 2014. Its HongKong listed stock was down 1.9 at HK4.14, having earlier fallen 3.8 to a record low of HK4.06.

Vanke39;s dollar bonds fell, with bidding on one tranche due December 2025 quoted around 66.3 in late trade, about 5 cents lower from Wednesday, Duration Finance data showed.

SP slashed its rating of China39;s secondbiggest developer by sales by three notches to BB from BBB, one rung into junk territory, becoming the last of the major creditrating firms to render Vanke39;s credit noninvestment grade.

It blamed Vanke39;s weakening competitive position and surging leverage and gave the new rating a negative outlook.

Meanwhile, China media reported on Wednesday a general manager of Vanke39;s Jinan branch, in the eastern Chinese province of Shandong, named Xiao Jin had been taken away by police for investigation, fuelling concerns among investors.

In a statement to Reuters on Thursday, Vanke said Xiao Jin is cooperating with investigations by relevant department for his personal matters.

The firm was operating normally, the statement said. Xiao39;s role had been taken over by a…