Evergrande’s listing on the stock market was suspended

The Chinese real estate development company Evergrande Group, which has serious liquidity and debt problems 3333.HK Following the news that the chairman of the board of directors, Hui Ka Yan, was detained by police yesterday, trading in the company’s shares was temporarily suspended today.

Concerns about Evergrande’s future increase as liquidation risk increases.

With more than $300 billion in debt, almost equivalent to Finland’s gross domestic product (GDP), Evergrande has become the epitome of the debt crisis in the real estate sector, which represents almost a quarter of the economy. from China.

Hui, who founded the company in 1996, was jailed

The story published yesterday in Bloomberg claims that Hui, who founded Evergrande in the southern Chinese city of Guangzhou in 1996, was taken by police to a special location earlier this month and kept under surveillance there.

Trading in shares of Evergrande and its two units was suspended a day after the news.

The Bloomberg news did not indicate why Hui was in custody.

Reuters could not confirm the Bloomberg report. Evergrande and the police did not respond to questions.

Evergrande seeks approval from creditors to restructure its offshore debt. The process became complicated this week after Evergrande said it could not issue new bonds due to an investigation into its parent subsidiary.

Some analysts have claimed that Evergrande’s offshore debt restructuring plan may fail and increase the company’s risk of liquidation. (REUTERS)