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Police In China Apprehend Employees Of The Evergrande Wealth Unit

Police In China Apprehend Employees Of The Evergrande Wealth Unit
Police in Shenzhen, southern China, have detained employees of the wealth management division of controversial real estate developer Evergrande.
Police urged the public to report any suspected fraud incidents in a social media post.
A newly established state-owned insurer was announced to be acquiring the company's insurance division on Friday.
Since 2021, a crisis has overtaken China's real estate market, and Evergrande is at the epicentre of it.
"Recently, public security organs took criminal compulsory measures against Du and other suspected criminals at Evergrande Financial Wealth Management Co," Shenzhen Nanshan District Police Bureau said on Saturday.
Apart from confirming that the person is known only as Du, no more information was provided regarding the number of people detained, their identities, or the potential charges they might be facing.
Investors may register complaints with the authorities, according to police, who also stated that the situation is still being investigated.
A wholly-owned subsidiary of Shenzhen-based Evergrande, which was founded in 2015, is Evergrande Financial Wealth Management Co.
Du Liang is the general manager of Evergrande Financial Wealth Management, according to his LinkedIn page.
There were no comments on the matter from Evergrande.
According to a plan unveiled on Friday by China's National Administration of Financial Regulation (NAFR), state-owned Haigang Life Insurance Co. Ltd. will take over the assets and liabilities of Evergrande Life Assurance.
After reversing a 25% drop earlier in the day, Evergrande shares were trading flat on Monday afternoon.
Beijing has been making it more challenging for real estate developers to acquire loans since 2020.
Evergrande, once one of China's largest corporations, accumulated debts of more than $300 billion (£242 billion) as it expanded quickly.
After going into default on its loans and suffering significant losses, it is currently working to restructure its firm.
Country Garden and Sino-Ocean, two other significant Chinese real estate developers, have had difficulty making debt payments.
The second-largest economy in the world's real estate sector is China.
Some experts worry that the sectoral issue could threaten to undermine the stability of the economy and spread to international financial markets.
For more than two years, Beijing has also been waging a campaign against what it claims to be finance sector wrongdoing.
The death sentence has been used as one of the harsh penalties meted out to top CEOs.

Christopher J. Mitchell

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