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When trading started in Hong Kong on Monday morning, the value initially fell by about 25 percent, but then recovered somewhat.
Local authorities announced on Saturday that an unspecified number of employees of the financial subsidiary Evergrande Wealth Management had been arrested. They did not provide more precise information on the number or identity of those arrested, nor on the charges against them. In their statement, police simply urged the public to report suspected cases of fraud.
Payment arrears and project cancellations
Evergrande has amassed debts estimated at more than 300 billion francs and is at the center of the crisis in China’s construction sector. In 2020, Chinese authorities responded to the sector’s escalating debt burden with restrictions on obtaining loans. This led to payment delays and project cancellations, especially at Evergrande.
Acquisition of Evergrande Life Insurance
On Friday, the National Financial Supervisory Authority gave the green light to the takeover of Evergrande’s bankrupt insurance subsidiary, Evergrande Life Insurance. The buyer is a new state-owned company set up for this purpose, called Haigang Life Insurance.
(AFP)
Source: Blick
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
