The police in China detained some of the employees of the wealth management division of the China Evergrande Group, suggesting a new investigation that could contribute to amplifying the troubles of the real estate giant, Reuters and news.ro report
China EvergrandePhoto: Tse Pui Lung, Dreamstime.com
“Recently, public security organs have taken mandatory criminal measures against Du and other alleged criminals from Evergrande Financial Wealth Management Co,” said the Shenzhen City Police.
During protests by disgruntled investors at Evergrande’s Shenzhen headquarters in 2021, Du Liang was identified by staff as the general manager and legal representative of Evergrande’s wealth management division.
Reuters could not confirm that Du was among those detained, and the police statement did not specify the number of people detained, the charges or the date they were detained.
China Evergrande did not immediately respond to a request for comment outside normal business hours on Sunday.
Police said the investigation into the financial management unit was ongoing and urged investors to report any other financial crimes.
China Evergrande, the world’s most indebted real estate developer, is at the center of a crisis in China’s real estate sector, marked by a series of debt defaults since the end of 2021, which has had a negative impact on the country’s economic growth.
The group, currently in a protracted debt restructuring that has seen it offload a number of assets, said on Friday it had postponed a decision on the offshore debt restructuring from September until next month.
Transactions with Evergrande shares were suspended for 17 months, until August 28.
Moody’s cut the outlook for China’s housing sector from stable to negative on Thursday, citing economic challenges it said would dampen sales despite government support.
Photo source: Tse Pui Lung, Dreamstime.com
