China police detain some Evergrande wealth management staff
The company logo is seen on the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China on Sep 26, 2021. (Photo: Reuters/Aly Song)
BEIJING: Police in southern China have detained some employees at China Evergrande's financial subsidiary, suggesting a new investigation that could add to the property giant's woes.
In a statement on Saturday night (Sep 16), police in the southern city of Shenzhen said employees at Evergrande Wealth Management were arrested, including a person with the surname Du.
Police did not specify the number of employees or the charges against them.
The statement called on the public to report any cases of suspected fraud to the authorities.
Du Liang is the unit's general manager and legal representative but it is not known if he is among those detained.
China Evergrande did not immediately respond to a Reuters request for comment on Sunday outside of normal business hours.
China Evergrande, the world's most indebted property developer, is at the centre of a crisis in China's property sector, which has seen a string of debt defaults since late 2021 that has dragged on the growth of the world's second-largest economy.
The group, currently undergoing a protracted debt restructuring which has seen it offload a range of assets, said on Friday it has delayed making a decision on offshore debt restructuring from September to next month.
Trade in Evergrande's stock was suspended for 17 months until Aug 28.
Moody's on Thursday cut the outlook on China's property sector to negative from stable, citing economic challenges it said would dampen sales despite government support.
