The electrical automobile system of struggling Chinese home designer China Evergrande states its vice chairman hasactually been apprehended by cops on “suspicion of unlawful criminalactivities.”
ByELAINE KURTENBACH AP company author
January 8, 2024, 12: 54 AM
Police vans are seen outdoors the headoffice of the Zhongzhi Enterprise Group Co. in Beijing, Tuesday, Nov. 28,2023 A leading executive of China Evergrande’s electrical lorry business hasactually been apprehended by cops in the mostcurrent indication of difficulty for the world’s most greatly indebted home designer. That followed news over the weekend that Zhongzhi Enterprise Group, a significant shadow bank in China that has provided billions in yuan (dollars) to residentialorcommercialproperty designers, submitted for personalbankruptcy liquidation after it was notable to pay its financialobligations. (AP Photo/Ng Han Guan)
The Associated Press
BANGKOK — A top executive of China Evergrande’s electrical lorry business hasactually been apprehended by authorities in the newest indication of problem for the world’s most greatly indebted residentialorcommercialproperty designer.
China Evergrande New Energy Vehicle revealed the detention of Liu Yongzhuo, its vice chairman and an executive director, in a notification Monday to the Hong Kong Stock Exchange. Its shares plunged almost 11% after they resumed trading lateron in the day.
That followed news over the weekend that Zhongzhi Enterprise Group, a significant shadow bank in China that has provided billions in yuan (dollars) to residentialorcommercialproperty designers, submitted for personalbankruptcy liquidation after it was notable to pay its financialobligations.
A crackdown on extreme loaning that started numerous years ago has left lots of Chinese designers out of company or havingahardtime for survival. The industry-wide disaster has snagged a important cog in China’s financial engine, resounding through monetary markets.
Share rates sank Monday in Hong Kong and Shanghai, with the criteria Hang Seng index down 2.2%. Evergrande Group’s shares lost 1.4%.
Evergrande hasactually been in crisis because