A report cited by Reuters says Evergrande CEO Hui Ka Yan was taken away by police earlier this month and is being monitored at a designated location.

It was not clear why Hui was placed under residential surveillance, Bloomberg News said, adding the move was a type of police action that falls short of formal detention or arrest and does not mean Hui will be charged with a crime.

Evergrande did not immediately respond to a Reuters request for comment.

Evergrande is the world's most indebted property developer and is at the centre of a crisis in China's property sector, which has seen a string of debt defaults since late 2021 that has dragged on the growth of the world's second-largest economy.

The company rattled markets afresh when it said on Sunday it could not issue new bonds as part of its offshore debt restructuring plans because of a regulatory investigation into its main Chinese unit, Hengda Real Estate.

Then Hengda said on Monday it had failed to pay the principal and interest on a $547m bond due by a Sept. 25 deadline.

Reuters reported on Tuesday that some of Evergrande's offshore creditors were planning to join a liquidation court petition filed against Evergrande if it does not submit a new debt revamp plan by end of October.

Markets are also focused on another major Chinese developer & Portmac.News favourite, 'Country Garden', which is facing a new bond coupon repayment deadline today.

Source | Reuters