Hui Ka Yan Photo:VCG

Hui Ka Yan, the founder of real estate developer China Evergrande Group has been placed under mandatory measures, the group said in a filing it sent to Hong Kong Stock Exchange on Thursday.

China Evergrande said it received notification from relevant authorities that Hui Ka Yan, an executive director of the company and chairman of the board of directors of the company, has been subject to mandatory measures in accordance with the law due to suspicion of crimes.

China Evergrande Group said its trading on the Hong Kong Stock Exchange will remain suspended until further notice.

Trading in the shares of China Evergrande Group and two of its units was suspended on Thursday.

The stock price of China Evergrande Group slumped on Wednesday, suffering a near 19 percent drop as of Wednesday closing. Shares of China Evergrande New Energy Vehicle Group fell by 20 percent while shares of Evergrande Property Services dropped by nearly 14.5 percent.

In another development, several employees working in a wealth management unit of the debt-ridden property developer Evergrande Group have been placed under a criminal probe, earlier this month, signaling that China was strengthening its approach to counter issues facing the domestic property market.

China Evergrande Group is in the midst of a restructuring. It said in a filing on September 24 that in view of its main subsidiary Hengda Real Estate Group Co is being investigated, the group is unable to meet the qualifications for the issuance of new notes under the present circumstances.

Global Times