Contents
China Evergrande Group’s Chairman, Hui Ka Yan, is facing an investigation amid suspicions of transferring assets offshore. The Wall Street Journal (WSJ) reported this development on Monday.
Complex Situation Amid Debt Woes
As Evergrande grapples with the challenge of completing unfinished projects, the company has been actively seeking creditors’ approval for restructuring its offshore debt. However, last week, the situation took a more complex turn when the company announced its inability to issue new debt due to an ongoing investigation into its primary China unit.
Chairman Under Police Scrutiny
Adding to the turmoil surrounding the embattled developer, Evergrande revealed on Friday that its chairman, Hui Ka Yan, is now under police watch and suspected of unspecified criminal activities.
Read More: SingTel Agrees to Sell Trustwave Stake for $205 Million
Offshore Creditors’ Ultimatum
Last week, Reuters reported that a consortium of offshore creditors was contemplating a court petition to liquidate Evergrande if the company failed to submit a new debt restructuring plan by the end of October.
Silence Amidst Holidays
Despite these critical developments, Evergrande remained tight-lipped. The company did not provide an immediate response to a Reuters request for comment during the week-long National Day holidays.
Debt Crisis in China’s Property Sector
With liabilities exceeding $300 billion, Evergrande has become a symbol of the debt crisis gripping China’s property sector, which accounts for approximately a quarter of the nation’s economy.
Trading Suspended Amidst Chairman’s Situation
Trading in Evergrande shares and two of its subsidiaries came to a halt on Thursday following reports that Hui Ka Yan had been taken into police custody and was being closely monitored at a designated location.
Stay tuned for more updates on this unfolding investigation into Evergrande’s offshore asset transfers.
Disclaimer: Please note that this article serves solely for informational purposes. Thus, must not construe as financial advice. We advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
