Trading of shares in China Evergrande Group, a significantly indebted Chinese property developer, was halted in Hong Kong on Thursday, as stated in a notice from the Hong Kong Stock Exchange.
This development followed reports by Bloomberg News indicating that earlier this month, Hui Ka Yan, the chairman of Evergrande, had been detained and was under police surveillance.
Holding the title of the world’s most indebted real estate developer, Evergrande is at the heart of a property market crisis impacting China’s economic progression.
To evade defaulting on debt amounting to $340bn (£280m), the group is actively implementing a restructuring plan, which includes the sale of assets.
On Wednesday, Evergrande shares concluded trading at 32 Hong Kong cents. After a 17-month break, the company recommenced trading on August 28. Additionally, trading in two affiliated units, China Evergrande New Energy Vehicle Group and Evergrande Property Services Group, was also suspended on Thursday.
