China Jails Evergrande Wealth Management Staffers

Police in southern China have detained some staff at China Evergrande Group's wealth management unit, suggesting a new investigation that could add to the property giant's woes, Laurie Chen and David Kirton reported for Reuters.

China Evergrande, the world's most indebted property developer, is at the center of a crisis in China's property sector.

"Recently, public security organs took criminal compulsory measures against Du Liang and other suspected criminals at Evergrande Financial Wealth Management Co.," Shenzhen city police said in a social media statement on Saturday night.

During protests by disgruntled investors at Evergrande's Shenzhen headquarters in 2021, Du Liang was identified by staff as the general manager and legal representative of Evergrande's wealth management division.

The police stated that the investigation into the financial management unit was ongoing and urged investors to report any further financial crimes. China Evergrande, the world's most indebted property developer, is at the center of a crisis in China's property sector.

This crisis has seen a string of debt defaults since late 2021, which have dragged down the growth of the world's second-largest economy.

The group, currently undergoing a protracted debt restructuring that has led to it offloading a range of assets, announced on Friday that it has delayed making a decision on offshore debt restructuring from September to next month.

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