Evergrande wealth administration workers detained amid ongoing debt crisis

China Evergrande Group, the world’s most closely indebted property developer, finds itself under elevated scrutiny as staff from its wealth management unit have been detained by the police in southern China.
Shenzhen City Police mentioned in a social media statement on Saturday night that public safety organs took criminal compulsory measures in opposition to China Evergrande basic supervisor Du Liang and different suspected criminals at Evergrande Financial Wealth Management Co. Details concerning the number of individuals apprehended and the fees brought in opposition to them were not specified.
According to the reports of protests by traders at China Evergrande’s Shenzhen headquarters in 2021, Du Liang was recognized by employees as the general supervisor and legal consultant of the wealth management division. It remains unsure if Du is among those that have been arrested.
When contacted, China Evergrande did not reply instantly for a remark. The police stated that the investigation remains to be ongoing and inspired traders to report any further financial crimes.
China Evergrande is on the heart of a disaster in China’s property sector, which has witnessed a slew of debt defaults since late 2021. This has considerably slowed down the expansion of the world’s second-largest financial system.
The beleaguered group, at present amid a drawn-out debt restructuring, has been promoting off a big selection of property. On Friday, it announced that the choice on offshore debt restructuring, due in September, has been postponed to subsequent month.
The company’s stock trading was halted for 17 months until August 28. Moody’s, the rating company, downgraded the outlook for China’s property sector from secure to negative on Thursday. It cited financial challenges that might probably dampen sales despite government assist, stories Bangkok Post.

Greatest , Chinese developer, Country Garden narrowly dodged a potential default by securing creditor approval to postpone a crucial bond repayment deadline. The developer has approximately US$187 billion in complete liabilities.
Follow more of The Thaiger’s latest tales on our new Facebook page HERE..

Leave a Comment