The billionaire chair and founder of China’s Evergrande Group, Hui Ka Yan, is under investigation for suspected “illegal crimes,” according to a statement issued by Evergrande on Thursday. Trading of Evergrande shares and its subsidiaries was halted in Hong Kong earlier today. The company did not provide details on the nature of the crimes or the measures Hui is subject to. This development follows reports that Hui, also known as Xu Jiayin, has been placed under police surveillance in China.
Evergrande, which is currently working to restructure and avoid liquidation, has been facing increasing scrutiny from Beijing. The company’s offshore debt restructuring plan has been jeopardized by an investigation into its main subsidiary in mainland China. Chinese police have also detained staff at a finance branch in September as part of their investigation into potential crimes committed by the company.
Evergrande’s shares have plummeted, losing almost all of its value since its peak in 2017. The drop continued this week, with a 19% decrease at market close on Wednesday. Hui’s net worth, according to Forbes, is currently estimated at $3.2 billion, a significant decline from his peak net worth of $42.5 billion in 2017.
