China’s Evergrande shares tumble 25% post police detain staff at wealth management unit

Shares of embattled developed Evergrande Group dropped by 25% after the police detained some of its staff at its wealth management unit, suggesting a new investigation that could add to the property company’s woes.

The company is the world’s most indebted property developer and is at the centre of crisis since late 2021. This is due to crisis in the China’s real estate sector, which has rattled the global markets and has feared contagion. Up until August, the trading in the company’s stock was suspended, which was for around 17 months.

In 2021, during the protests by disgruntled investors at its Shenzhen headquarter, Du Liang was identified as its general manager and legal representative by the staff members of Evergrande’s wealth management division.

It is not yet confirm if Du was among the detained employees, as it has not been made clear as of how many employees are detained. Neither the dates nor the charges against the detained has been shared by the police.