After Chinese police detained Evergrande Fortune executives, ChinaEvergrande GroupThe stock price fell 25% in early trading on the 18th. Evergrande’s share price fell to HK$0.465 in early trading on Monday, the lowest in two weeks, according to Reuters.
Shenzhen Nanshan Public Security Bureau announced on the 16th that the public security organs will take criminal punitive measures against Du Mou of Evergrande Financial Wealth Management (Shenzhen) Co., Ltd. and other suspected criminals. The police report does not mention the number of those detained, the charges or the dates of their detention.
State media Shanghai Securities News, quoting relevant sources, reported that Du Liang, the legal representative of Du Evergrande Wealth, is the general manager. Reuters reported that it could not confirm whether Du Liang was among those detained.
Evergrande announced in August that as of June 30, it had incurred a new loss of 33 billion RMB in the first half of this year, compared with a loss of 66.4 billion RMB in the same period last year.
Earlier this month, Evergrande said it had withdrawn its offshore loanReconstructionThe decision was postponed from September to next month to give debt holders more time to consider their restructuring plan.
Chinareal estateThe business has been in crisis over the past two years, with Evergrande being the most indebted real estate developer in the world. There have been a series of defaults in China’s real estate sector since late 2021, disrupting global markets and raising concerns about contagion.
In March 2022, the Hong Kong Stock Exchange suspended trading in Evergrande’s shares after it failed to announce its 2021 financial report. Evergrande shares officially resumed trading on the Hong Kong Stock Exchange on August 28 this year after being suspended for 17 months.
Finance(TagstoTranslate)Evergrande Group(T)Real Estate(T)Restructuring