Evergrande shares plunged 25% after several of the developer’s employees were detained
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Shares of troubled Chinese developer China Evergrande Group lost 25% of their value at the opening of trading on the Hong Kong stock exchange, reaching HK$0.465 per share. According to Reuters, this is the lowest figure in the last two weeks. The fall was preceded news about the police detention of several employees of China Evergrande Group.
The detention of company employees became known on Sunday. According to Shenzhen police, the head of Evergrande’s wealth management division, Du Liang, and several other people were detained. The police have not yet disclosed the essence of the charges, nor has the exact number of detainees been indicated.
Evergrande’s share price has seen sharp ups and downs since late August, when trading in the developer’s securities resumed after a 17-month hiatus. On the first day of trading, shares fell in price by 80%. September 6 their cost took off by 70%. Evergrande crisis continues from 2021. Then it became known about the holding’s serious financial problems. The company’s debt reaches $328 billion. Last year, Evergrande experienced a technical default on its debt obligations, and the company’s restructuring process is still ongoing.
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