Chinese police have arrested several employees of the Chinese real estate developer Evergrande a month after the company filed for bankruptcy in the United States. Until now, the number of detainees and the charges they face are unknown. The authorities are still investigating, according to a statement from the Police of the city of Shenzhen (China) – where the promoter’s headquarters are located -, the newspaper South China Morning Post has published.
The police have asked the population to report suspicions of fraud via the internet, telephone, message or email. Evergrande was already under the spotlight in 2021 after it was learned that at least half a dozen employees redeemed wealth management products before the scheduled dates, although they were later reprimanded and forced to return the funds.
On August 18, the company filed for Chapter 15 protection of the United States Bankruptcy Law with the aim of protecting the company’s assets in the United States, while the company’s restructuring agreements are managed in Hong Kong and the Cayman Islands.
Stock market fall
This morning Evergrande shares fell more than 3% at 8:50 a.m. Spanish time, to 0.60 Hong Kong dollars (0.071 euros). The real estate firm’s shares fell by more than 24% during Monday’s session on the Hong Kong Stock Exchange, although they have moderated their decline as the trading day progressed.
The other large construction company in the Asian country, Country Garden, has been dragged down by the fall of Evergrande and its shares fell more than 2.8% on the Hong Kong Stock Exchange. The Hang Sheng, the Hong Kong Stock Exchange index, fell 1.3%, weighed down, among other companies, by both real estate companies.
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