Additional information regarding the number of individuals detained, their identities (except for a person identified as Du), and potential charges they might face has not been disclosed by the authorities.
The case remains under investigation, and investors are encouraged to report complaints to the relevant authorities.
Evergrande Financial Wealth Management Co. is a wholly-owned subsidiary of Evergrande, founded in 2015 and headquartered in Shenzhen.
According to a LinkedIn profile, Du Liang serves as the general manager of Evergrande Financial Wealth Management, but the resources could not independently verify whether he was one of those detained by the police.
As part of a plan announced by China’s National Administration of Financial Regulation (NAFR) on Friday, the assets and liabilities of Evergrande Life Assurance will be assumed by the state-owned Haigang Life Insurance Co. Ltd.
Evergrande’s shares initially experienced a 25% loss earlier in the day but later stabilized, trading flat on Monday afternoon.
Since 2020, Beijing has been tightening access to credit for property developers. Evergrande, once one of China’s largest companies, amassed debts exceeding $300 billion (£242 billion) due to rapid expansion.
The company is currently in the process of restructuring after defaulting on its debts and incurring substantial losses.
Several other major Chinese property developers, including Country Garden and Sino-Ocean, have also faced difficulties in meeting debt obligations.
China’s real estate sector is a crucial component of the world’s second-largest economy.
Some experts express concerns that the crisis in this sector could potentially destabilize the economy and have repercussions in global financial markets.
Concurrently, Beijing has been conducting a crackdown on alleged financial sector corruption for over two years, resulting in severe penalties, including the death penalty, for top executives implicated in such cases.
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