Billionaire owner of Evergrande real estate company Unofficially detained by Chinese police Keep a watchful eye 24 hours a day amid delays in the debt restructuring process. After experiencing a debt crisis of more than 300 billion dollars
Bloomberg News, September 27, 2023, reported Mr. Hui Ka Yan, billionaire chairman of the company. Evergrande China’s giant real estate development company is being detained by Chinese police The reason why Mr. Hui was treated like this by the police was not disclosed. Amid delays in the debt restructuring process, a huge debt of more than 300 billion dollars.
The Bloomberg report said, citing sources close to the matter, that Mr Hui, who founded Evergrande in 1993 in Guangzhou, Guangdong province, was taken away by Chinese police in early September. come and is currently under police custody at an undisclosed location.
It is currently unclear why Mr Hui was unceremoniously detained by police. By Bloomberg said Police methods this time It is not considered an arrest or detention. It also does not mean Mr Hui will be formally charged.
But if referring to Chinese criminal law Those who are under the close watch of the police Mr. Hui will not be able to leave the residence. or meet with others without permission In addition, the police will confiscate ID cards. and passport or temporary passport which according to law This process can last no more than 6 months.
However, after questioning the police in Guangdong Province and Evergrande Company, has refused to comment on the news report by Bloomberg.
Bloomberg pointed out that This may be the latest sign that Debt default by Chinese real estate giant that is reportedly the world’s most indebted. It may be entering a new phase or stage related to criminal cases. by previously Chinese authorities have arrested two former executives and some officials of Evergrande. This is because Evergrande is seen as one of the drivers of a major real estate crisis in China since 2021, with Evergrande’s enormous debt problems. And the delay in debt restructuring is seriously affecting confidence in the housing market. and began to destabilize China’s economic system
In addition, the Bank of China It was once blamed on Evergrande’s debt crisis. It comes from poor company management. and expand business without care In addition, the Chinese government called on Mr. Hui. Use your own personal money to pay off debt.
Evergrande Company filed for Chapter 15 bankruptcy protection in the United States in August 2023, while the real estate crisis was raging. China’s developments have continued to spread, with “Sunac China Holdings” being the second Chinese real estate company to file for bankruptcy, following on September 19th.
2023-09-27 12:59:00
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