Police in Shenzhen, China have detained several staff members at China Evergrande Group’s wealth management unit, according to a statement by the Shenzhen police on Saturday. The authorities took “criminal coercive measures” against suspects, including Du and others, who were associated with the financial wealth management company under Evergrande Group. The identity of Du was not immediately clear. China Evergrande Group, the world’s most heavily indebted developer, is currently facing financial troubles and is undergoing a restructuring plan to avoid defaulting on its $340 billion debt.
In recent years, China’s property market crisis, with Evergrande at its center, has been impacting the country’s economic growth. The company has been trying to offload assets and implement various measures to address its debt burden. On Friday, China’s national financial regulator approved the takeover of Evergrande’s life insurance arm by a new state-owned entity.
The ongoing debt defaults in the property sector have resulted in unfinished apartment buildings and dissatisfied homebuyers. Concerns are growing that the real estate crisis may further slow down China’s economy and have global implications.