MADRID, 28 Sep. (EUROPA PRESS) –
Trading in the shares of the Chinese real estate developer Evergrande and two of its subsidiaries on the Hong Kong Stock Exchange has been suspended after the house arrest of the company’s president, Hui Ka Yan, was revealed, according to several communications published on the Hong Kong Stock Exchange.
Evergrande shares closed on Wednesday with a decline of 18.99% on the Hang Seng Index in Hong Kong, down to 0.32 Hong Kong dollars (0.039 euros) per share.
The suspension of trading of its shares in this stock market occurs after learning this Wednesday of the police surveillance ordered against the president of Evergrande despite having already been requested by the police earlier this month.
In this sense, the legislation of the Asian ‘giant’ provides that the incommunicado regime and the delivery to the authorities of the passport and DNI to which Hui has been subjected does not exceed a period of six months.
However, the reasons for such measures have not been revealed, since he has not been formally detained nor have charges been brought against him.
Just a few days ago, Evergrande reported that it “could not meet the requirements” for the issuance of new notes because one of its main subsidiaries, Hengda Real Estate, was under investigation.
Likewise, last week several Evergrande Wealth employees were arrested just a month after declaring bankruptcy in the United States. Then, the company assured that the arrests “would not affect its operations.”
According to the police in Shenzhen, in the southern province of Guangdong and where the real estate group is based, among those detained was a person surnamed Du, which could refer to Du Liang, CEO of Evergrande Wealth.
The arrest of Evergrande Wealth workers also came two weeks after the group again defaulted on payments on its investment products. However, the police asked the population to report suspicions of fraud through the internet, telephone, messages or email.
