HONG KONG: Shares of embattled developer China Evergrande Group plunged 25% on Monday after police detained some staff at its wealth management unit, suggesting a brand new investigation that might add to the property firm’s woes. Evergrande, the world’s most indebted property developer, is on the centre of a disaster in China’s actual property sector that has seen a string of defaults since late 2021 which have rattled international markets and sparked fears of contagion. Trading within the firm’s inventory was suspended for 17 months till Aug. 28.
During protests by disgruntled buyers at Evergrande’s Shenzhen headquarters in 2021, Du Liang was recognized by staff as basic supervisor and authorized consultant of Evergrande’s wealth management division.
“Recently, public security organs took criminal compulsory measures against Du and other suspected criminals at Evergrande Financial Wealth Management Co,” police within the southern metropolis of Shenzhen mentioned in a social media assertion on Saturday night time.
Reuters couldn’t verify that Du was amongst these detained, and the police assertion didn’t specify the variety of folks detained, the fees or the date they have been taken into custody.
Evergrande has not responded to request for touch upon the police motion.
The inventory fell as a lot as 25% to HK$0.465 in early morning commerce, the bottom in two weeks. It pared losses by 0200 GMT, down 11%, lagging a 0.9% fall within the broader Hang Seng Index .
Last month, the Chinese developer posted a January-June internet lack of 33 billion yuan ($4.5 billion), versus a 66.4 billion yuan loss in the identical interval the earlier yr.
Earlier this month, Evergrande mentioned it had delayed making a call on offshore debt restructuring from September to subsequent month to permit holders of its debt extra time to think about its restructuring plan.
During protests by disgruntled buyers at Evergrande’s Shenzhen headquarters in 2021, Du Liang was recognized by staff as basic supervisor and authorized consultant of Evergrande’s wealth management division.
“Recently, public security organs took criminal compulsory measures against Du and other suspected criminals at Evergrande Financial Wealth Management Co,” police within the southern metropolis of Shenzhen mentioned in a social media assertion on Saturday night time.
Reuters couldn’t verify that Du was amongst these detained, and the police assertion didn’t specify the variety of folks detained, the fees or the date they have been taken into custody.
Evergrande has not responded to request for touch upon the police motion.
The inventory fell as a lot as 25% to HK$0.465 in early morning commerce, the bottom in two weeks. It pared losses by 0200 GMT, down 11%, lagging a 0.9% fall within the broader Hang Seng Index .
Last month, the Chinese developer posted a January-June internet lack of 33 billion yuan ($4.5 billion), versus a 66.4 billion yuan loss in the identical interval the earlier yr.
Earlier this month, Evergrande mentioned it had delayed making a call on offshore debt restructuring from September to subsequent month to permit holders of its debt extra time to think about its restructuring plan.
