The Chinese authorities have moved decisively against leaders of Evergrande Group, the property company whose collapse is at the heart of the country’s financial crisis.
After months of attempting to oversee a restructuring of the company and prevent a bursting property bubble from spreading to other businesses and through the economy, Beijing has rounded up a number of senior executives.
It has also put Evergrande’s founder and chairman, Hui Ka Yan, a rags-to-riches billionaire once said to be Asia’s richest man, under house arrest, Bloomberg reported.
China’s property sector has suffered a series of debt defaults — and Evergrande Group is facing total liabilities of more than $300 billion
Pan Darong, a former chief financial officer, has been formally detained, according to Caixin, China’s biggest financial news website, and the former chief executive Xia Haijun is also under house arrest.