China: Evergrande shares tumble 25% after wealth management staff detained

Source: Reuters

“Shares of embattled developer China Evergrande Group plunged 25% on Monday after police detained some staff at its wealth management unit, suggesting a new investigation that could add to the property company’s woes. Evergrande, the world’s most indebted property developer, is at the centre of a crisis in China’s real estate sector that has seen a string of defaults since late 2021 that have rattled global markets and sparked fears of contagion. Trading in the company’s stock was suspended for 17 months until Aug. 28. … Last month, the Chinese developer posted a January-June net loss of 33 billion yuan ($4.5 billion), versus a 66.4 billion yuan loss in the same period the previous year. Earlier this month, Evergrande said it had delayed making a decision on offshore debt restructuring from September to next month to allow holders of its debt more time to consider its restructuring plan.” (09/18/23)