Shares of the Evergrande, the Chinese real estate developer with the world’s largest debt, collapsed after news that Chinese police had detained employees of its asset management unit.
The stock fell by 25% to HK$0.465 ($0.06) at its lowest point.
The detentions indicate a new investigation against Evergrande, which could worsen the company’s problems.
Shenzhen police stated on Saturday, Sept. 16, that law enforcement had taken action against several employees of Evergrande Financial Wealth Management, including Du Liang, who was identified as CEO of Evergrande’s asset management unit in 2021.
The police statement did not specify the number of detainees or the charges against them.
Shares of other Chinese developers also dropped following the news of the detentions. The industry index lost more than 2%.