China Evergrande says founder Hui Ka-yan under ‘mandatory measures’ for alleged crimes, amid stock trading halt in Hong Kong

Name: SCMP
Telephone: +852-2680-8888

Shares of China Evergrande, Evergrande Property Services and China Evergrande New Energy Vehicle Group will be suspended from trading until further notice

Developer said it has been notified by authorities that its chairman and founder has been placed under ‘mandatory measures’ for unspecified crimes

Reading Time:3 minutes

Why you can trust SCMP

China Evergrande Group Chairman Hui Ka Yan at a press conference on the property developer’s annual results in Hong Kong on March 28, 2017. Photo: Reuters

Jiaxing Liin Hong Kong,Yulu Aoin Hong KongandChad Brayin London

Published: 10:20am, 28 Sep 2023Updated: 11:46pm, 28 Sep 2023

China Evergrande Group said its chairman and founder Hui Ka-yan has been placed under so-called “mandatory measures” due to “suspicion of illegal crimes”, hours after the troubled Chinese property developer suspended trading of its shares and those of its two major subsidiaries.

Hui, known as Xu Jiayin on the mainland, has not been seen in public for some time, and his whereabouts were a subject of intense speculation in mainland media. The announcement followed the arrest of several top executives within the group earlier this month.

The Shenzhen-based developer said it had been notified by relevant authorities in China that Hui was subject to mandatory measures, according to the exchange filing. It did not elaborate. The term can include house arrest, among others, in local regulatory parlance, analysts said.

Evergrande on Thursday asked for the suspension of trading in its shares, as well as shares of Evergrande Property Services and China Evergrande New Energy Vehicle Group, without giving a reason. The three stocks would remain halted until further notice, it added in the latest announcement.

03:18

China Evergrande suspends market trading amid questions about chairman’s whereabouts

Evergrande, the world’s most indebted developer with US$327 billion of liabilities, sparked a crisis in China’s property markets when it defaulted on its offshore debt two years ago. It has struggled to restructure US$20 billion of its offshore debt and claims just as the process entered its final leg this quarter.