Topline
Shares of embattled property giant China Evergrande Group were suspended in Hong Kong on Thursday following a report its billionaire chairman has been placed under police surveillance, adding to growing concerns over the developer’s future as it works to restructure and fend off the looming specter of liquidation.
Evergrande shares stopped trading in Hong Kong on Thursday.
Key Facts
Trading in shares of China Evergrande Group in Hong Kong were halted at 9 a.m. local time, according to a filing to the stock exchange.
The filing gave no reason for the trading halt.
Trading shares for two Evergrande subsidiaries—China Evergrande New Energy Vehicle Group and Evergrande Property Services Group—were also halted at the same time, according to separate filings, neither of which gave a reason for the stop.
Evergrande shares were down 19% at market close on Wednesday, taking losses to 42% this week.
News Peg
The trading halt comes a day after Bloomberg reported Evergrande chairman and founder Hui Ka Yan, also known as Xu Jiayin, had been placed under police surveillance. The move—which requires Hui to surrender his passports and restricts his ability to leave a designated location or speak to others without permission—falls short of the thresholds for formal detention or arrest and does not mean Hui will be charged with a crime. It adds to the woes of the company, which is on the brink of collapse amid increasing scrutiny from Beijing as it moves to stabilize China’s crisis-ridden property sector. Fears of liquidation have grown in recent weeks after the company admitted its offshore debt restructuring plan could be in trouble due to an investigation into its main subsidiary in mainland China. Chinese police are now investigating the company for potential crimes and detained staff at a finance branch in September.
Forbes Valuation
$3.2 billion. That’s Hui’s net worth, according to Forbes’ real-time tracker. At his peak in 2017, Hui was worth $42.5 billion and was ranked the richest person in Asia. Hui was born into a poor family and worked at a steel factory before founding Evergrande. He took the company public in 2009—it was labeled a defaulter in 2021 with more than $300 billion in liabilities—and was well connected in business and politics, including inside China’s ruling Communist Party.
