Wednesday

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow">website policy</a>&nbsp;prior to making financial decisions.
</div>
<p>Evergrande’s shares tumbled to a three-week low on Wednesday after <a href="https://www.bloomberg.com/news/articles/2023-09-27/evergrande-s-billionaire-chairman-hui-is-under-police-surveillance" target="_blank" rel="noopener noreferrer nofollow">Bloomberg reported</a> that the company’s chairman Hui Ka Yan is being held under police surveillance. Hui was detained earlier in the month, along with <a href="https://www.reuters.com/world/china/china-evergrande-shares-tumble-25-after-wealth-management-staff-detained-2023-09-18/" target="_blank" rel="noopener noreferrer nofollow">other Evergrande executives and staff</a>.&nbsp;</p>
<h3 id="no-indications-that-hue-is-charged">No Indications that Hue is Charged</h3>
<p>Shares of the Chiana Evergrande Group took yet another beating Wednesday after reports revealed that police are holding the company’s chairman. According to Bloomberg, Hui Ka Yan has been placed under police control after being arrested earlier this month.</p>
<blockquote class="wp-block-quote">
 <p>“Hui was taken away by Chinese police earlier this month and is being monitored at a designated location, the people said, asking not to be identified because the matter is private.”</p> <cite>– Bloomberg wrote in the report. </cite>
</blockquote>
<p>For the time being, it remains unknown why Hui is being held. That said, there are no indications that the billionaire chairman has been officially charged with a crime.</p>
<p>However, Hui is not allowed to leave the location, meet, or talk with other people without approval, under the rules of <a target="_blank" rel="noopener noreferrer nofollow">China’s Criminal Procedure Law</a>. This rule also states that the detainee’s passport and ID card must be handed to the police, although the process should not last more than six months.&nbsp;</p>
<div class="cta-referral">
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" loading="lazy">
 <div class="cta-referral__text">
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p>
 </div>
</div>
<h3 id="fears-emerge-that-property-crisis-can-spread-to-other-sectors">Fears Emerge That Property Crisis Can Spread to Other Sectors</h3>
<p>From a broader perspective, the news marks the latest blow to the Evergrande Group, the second-largest property developer in China by sales.&nbsp;</p>
<p>The absence of the company’s chairman has now further clouded Evergrande’s restructuring plan designed to help it stay afloat as the <a href="https://tokenist.com/chinas-biggest-property-developer-expects-to-post-7-6b-loss-for-h1-2023/" rel="noopener noreferrer nofollow">property crisis in China</a> deepens. Meanwhile, the company’s shares plummeted by an additional 19%, printing a fresh 3-week low of 0.32 HKD ($0.04).&nbsp;</p>
<p>The stock market slump comes just a day after Evergrande’s shares crashed by 21% after the company canceled key creditor meetings. On the same day, China’s property stocks witnessed the sharpest drop in 2023, putting additional pressure on the world’s second-biggest economy. The Chinese authorities have adopted several measures to shore up the local equity market, such as <a href="https://tokenist.com/china-to-cut-stocks-stamp-duty-for-first-time-since-2008-as-market-hits-9-month-low/" rel="noopener noreferrer nofollow">cutting the stamp duty</a> on stocks, although these steps have made little impact so far.&nbsp;</p>
<p>Meanwhile, the deteriorating property crunch led to fresh risks. Specifically, the worsening investor sentiment caused fears that the ongoing turmoil <a href="https://tokenist.com/how-chinas-property-crisis-can-spill-into-commodities-other-markets/" rel="noopener noreferrer nofollow">could spread into other sectors</a>, most notably commodities.</p>
<div class="cta-sub js__cta-sub">
 <div class="cta-sub__start">
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div>
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div>
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> Try it out (for free)
 </div>
 <div class="cta-sub__form" style="display: none;">
 </div>
 <div class="cta-sub__result" style="display: none;">
  <div class="cta-sub__title">
   Awesome
  </div>
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div>
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div>
 </div>
</div>
<p><em><strong>Why, in your opinion, are Chinese authorities holding Evergrande’s chairman, given that he’s not charged with a crime? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/evergrande-falls-18-as-chairman-reported-to-be-under-police-surveillance/">Evergrande Falls 18% as Chairman Reported to be Under Police Surveillance</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Evergrande Falls 18% as Chairman Reported to be Under Police Surveillance

Table of Contents

Tokenist

Other articles published on Sep 27, 2023

Join our free newsletter for daily crypto updates!