The sprawling business empire, run by Hong Kong's third-richest family, reported an annual loss of over US$2.5 billion in late September.
Former Hong Kong development minister Ma took over as CEO from Adrian Cheng, a grandson of the founder, when the losses were announced.
But in a Friday stock exchange filing, New World said Ma had "tendered his resignation as an Executive Director and the chief executive officer of the Company in order to pursue his other personal commitments".
Company executive director Huang Shaomei, also known as Echo Huang, has been appointed CEO effective on Friday for a term of three years, New World said.
Patriarch Henry Cheng said in a statement that he was "very pleased to have found a more suitable candidate", saying Huang had extensive experience in real estate and corporate management.
Cheng said that reviewing the firm's development direction showed that "timely phased changes need to be made, and the role of the CEO also requires to be adjusted".
New World's share price fell by around six percent before trading was halted shortly after Friday lunchtime.
The company said trading will resume on Monday.
The property arm is the largest unit of New World, whose interests also span jewellery, department stores and logistics.
That has left it vulnerable as Hong Kong suffers the longest property market downturn since the SARS outbreak in 2003.
Once a blue-chip stock, New World will be removed from Hong Kong's benchmark Hang Seng Index starting next month, a sign of its declining value in recent years.
Morningstar analyst Jeff Zhang told Bloomberg News that Ma's departure will not have a significant impact on New World's operations.
"The company will continue to promote residential sales and asset divestment in the future to accelerate deleveraging," Zhang said.
The developer on Thursday sold its stake in Hong Kong's largest sports complex, Kai Tak sports park, to an investment vehicle owned by the family.
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