Evergrande suspends trading in Hong Kong after Hui concerns

CHINA Evergrande Group suspended trading in Hong Kong, along with its property services and electric vehicle units, a move following Bloomberg’s report on founder Hui Ka Yan being taken away by police.

No reason was given for the halt in a notice to the Hong Kong Stock Exchange on Thursday (Sep 28).

Bloomberg reported that Hui was taken away earlier this month and is being monitored at a designated location. It’s not clear why Hui is under so-called residential surveillance, a type of police action that falls short of formal detention or arrest and does not mean Hui will be charged with a crime.

The move is the latest sign that the saga at the world’s most indebted developer has entered a new phase involving the criminal justice system, after authorities earlier this month detained some staff at its wealth management unit and two former executives were also held, according to Caixin.

It adds to questions over the fate of Evergrande after setbacks to its restructuring plan in recent days roiled financial markets and raised the risk of a liquidation.

The three suspended entities had a combined market value of HK$16.7 billion (S$2.9 billion) on Wednesday, down from HK$81.4 billion before their recent trading resumptions. BLOOMBERG