Shares in Evergrande, the world’s most indebted Chinese developer, fell by a quarter following reports that employees in its asset management division had been detained. At this time, the price of the securities was 0.465 Hong Kong dollars, but at the close of trading at 11:00 Moscow time, the price of the securities rose to 0.61 Hong Kong dollars, which is 1.62% lower than the 2019 close. previous trading session. This is evidenced by trading data from the Hong Kong Stock Exchange.
Shares of other Chinese developers also fell following news of the arrest. Industrial index quotes fell more than 2%. By publication ReutersThe arrests could signal a new investigation against the developer, which could make matters worse. Police did not provide a motive or the number of people detained. Before that, it became known that the financial part of the developer had difficulties in obtaining funds from the sale of assets and the inability to pay debts.
Developer officially announced The default is still in 2021. Total liabilities reached 327.8 billion dollars. Decision to restructure early debts affected September to October due to the need to give creditors more time
Evergrande, formerly China’s largest developer stated about colossal losses.