The share price of debt-ridden Chinese real estate giant Evergrande plunged more than 25% at the opening of the Hong Kong Stock Exchange on Monday, following the arrest of several of its employees by the Chinese police. The price of Evergrande, which closed at 0.63 Hong Kong dollars (0.075 euros) on Friday, fell to 0.46 Hong Kong dollars at the opening on Monday before starting to rise again.
This new fall comes two days after the announcement by police in Shenzhen, in southern China, of the arrest of several employees of its financial subsidiary, Evergrande Wealth Management. The police statement, which does not specify the number of employees involved or the charges against them, also calls on the public to report any cases of suspected fraud to the authorities.
Formerly the number one in real estate in China, the group has begun a descent into hell since the Chinese authorities reduced access to credit in 2020, in the face of soaring debt in this sector. Evergrande's debt was estimated at $328 billion (€307 billion) at the end of June.