TAIYUAN - Two suspects who allegedly kidnapped the chairman of a real estate group in North China's Shanxi province on Tuesday were shot dead by police.

The two were shot while resisting arrest and attempting to escape on Wednesday, local police said at a press conference Thursday.

Police in the city of Datong received a report on Tuesday noon that the chairman of the city's Huayue Group, surnamed Zan, was kidnapped by two armed men who demanded a ransom. More than 500 policemen were dispatched to rescue the hostage, said the public security bureau of Datong city.

Police found the suspects driving two cars early Wednesday morning and tried to arrest them. They were shot dead after they fired shots to resist police. The hostage was rescued, according to the bureau.

Two cars, two guns, and 31 bullets were also seized at the scene.

The two suspects, surnamed Tong and Jia, were natives of the city's Nanjiao District, police said.

Further investigation into the case is still under way.