China Evergrande Group’s logo is displayed on a phone screen in this illustration photo taken on September 27, 2021.
Jakub Porzycki | Nurphoto | Getty Images
Following the suspension of China Evergrande’s shares in Hong Kong, the troubled Chinese property firm has announced that its director and executive chairman, Hui Ka Yan, is under investigation for suspected criminal activities.
In a late Thursday statement to the Hong Kong Stock Exchange, Evergrande stated that Hui Ka Yan “has been subject to mandatory measures in accordance with the law due to suspicion of illegal crimes.” As a result, the company’s shares will remain suspended indefinitely.
This development comes after a Wednesday report by Bloomberg, which stated that Hui had been “placed under police control.” According to Bloomberg’s sources, Hui was taken away by Chinese police earlier this month and is currently being monitored at a designated location.
Evergrande has also released a separate filing regarding the status of its subsidiary Hengda Real Estate Group. According to the filing, Hengda has failed to pay the principal and interest for a 4 billion yuan ($547 million) bond that was due on September 25.
As of the end of August, Hengda had a total of 1,946 pending litigation cases involving more than 30 million yuan each, with a total amount of approximately 449.298 billion yuan ($61.61 billion) at stake.
The total unpaid debts from Hengda amount to approximately 278.53 billion yuan, with overdue commercial bills of about 206.777 billion yuan.
In addition, there are 163 new enforcement cases against Hengda Real Estate in August, involving a total amount of approximately 9.13 billion yuan, although the nature of these cases was not specified in the filing.
Hengda has also faced 68 new cases where its equity interests in subsidiaries and investee companies have been frozen as a result of enforcement actions against it.
Once the largest private sector developer by sales in China, Evergrande has been plagued by financial troubles.
The world’s most indebted real estate company defaulted in 2021 and its shares were suspended in March 2022. Trading of its shares only resumed in late August of this year after a 17-month halt.
This week, Evergrande announced that an investigation into Hengda has prevented it from issuing new notes under its debt restructuring plan.
Furthermore, the company has postponed a debt restructuring meeting with creditors that was originally scheduled for Monday, citing disappointing sales since its March debt restructuring announcement.
As a result, Ever
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