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Chinese police detain Evergrande employees after financial arm of indebted company fails to pay investors

  • Evergrande Wealth Management staff detained in Shenzhen, but it is unclear what charges they face or if general manager Du Liang is among them
  • Subsidiary of cash-strapped developer unable to make payments because of liquidity crunch, according to earlier announcement

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Evergrande’s financial subsidiary made headlines in 2021 after it was revealed that half a dozen of its employees redeemed wealth management products ahead of their scheduled dates. Photo: AFP
Police in China have for the first time detained a number of employees at the financial subsidiary of Evergrande – the world’s most indebted property developer – two weeks after the group again failed to make payments on its investment products.
In a statement on Saturday night, police in the southern city of Shenzhen, where the cash-strapped developer is headquartered, said they had detained employees at Evergrande Wealth Management, including a person surnamed Du.

Du Liang is the unit’s general manager but it is not known if he is among those detained.

According to the notice, the suspects were subject to “criminal compulsory measures”, a term that usually refers to detention or restrictions on movements.

Without specifying the number of employees held or the charges against them, the notice stated that the case was “under further investigation”.

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