Monday, December 11, 2023

The house arrest of its president caused the collapse of 18% of the shares

Evergrande: the house arrest of its president caused the collapse of 18% of the shares

The actions of Chinese real estate developers Evergrande They dropped more than 18% this Wednesday in the stock market after the house arrest of the company’s president, Hui Ka Yan, was revealed.

In this way, Evergrande has lost 18.99% of its value since the opening session of the Hang Seng index in Hong Kong, which closed at a price of 0.32 Hong Kong dollars (0.039 euros) per share.

These actions happened after the police surveillance decree against the president of Evergrande even though the police had already requested it earlier this month. In this sense, the legislation of the ‘giant’ in Asia provides that the regime of non-communication and the delivery of the passport and DNI authorities to which Hui is subjected does not exceed a period of six months.

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However, the reasons for such measures have not been revealed, as he has not been formally detained and no charges have been filed against him.

Just a few days ago, Evergrande reported that it “cannot meet the requirements” for issuing new notes because one of its main subsidiaries, Hengda Real Estate, is under investigation.

Also, last week several employees of Evergrande Wealth were arrested just one month after filing for bankruptcy in the United States. Then, the company assured that the arrests “will not affect its operations.”

According to police in Shenzhen, in the southern province of Guangdong and where the real estate group is based, among those detained is a man surnamed Du, which may refer to Du Liang, CEO of Evergrande Wealth.

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The arrest of Evergrande Wealth workers also came two weeks after the group failed to make payments on its investment products. However, police are asking the public to report suspected fraud via the internet, phone, text or email.

Nation World News Desk
Nation World News Desk
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