Pressure on China Evergrande increases with report chairman under police surveillance

HONG KONG, Sept 27 (Reuters) – The chairman of China Evergrande Group (3333.HK) has been placed under police surveillance, Bloomberg News reported on Wednesday, increasing pressure on the embattled developer whose outlook has already come under severe scrutiny this week. It has gone bad.

Hui Ka Yan was taken away by police earlier this month and is being monitored at a designated location, the report said, citing people with knowledge of the matter.

It was unclear why Hui was placed under residential surveillance, Bloomberg News said, adding that the move was a type of police action that falls short of formal detention or arrest and does not mean Hui was charged with any crime. Will go.

Reuters could not immediately confirm the Bloomberg report. Evergrande did not immediately respond to a Reuters request for comment.

Evergrande is the world’s most indebted property developer and is at the center of a crisis in China’s property sector, which has seen a series of loan defaults since late 2021 that have hit growth in the world’s second-largest economy.

The company again stirred markets when it said on Sunday it may not issue new bonds as part of its offshore debt restructuring plan due to a regulatory investigation into its main Chinese unit, Hengda Real Estate.

Then Hengda said on Monday it had failed to pay principal and interest on 4 billion yuan ($547 million) of bonds by the Sept. 25 deadline.

Reuters reported on Tuesday that some of Evergrande’s offshore creditors were planning to join a liquidation court petition filed against Evergrande if it does not submit a new debt reform plan by the end of October.

Markets are also focused on another major Chinese developer, Country Garden (2007.HK), which faces a new bond coupon repayment deadline on Wednesday.

Reporting by Scott Murdoch in Sydney and Zi Yu in Hong Kong; Written by Muralikumar Anantharaman; Editing by Neil Fullick

Our Standards: The Thomson Reuters Trust Principles.

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