(Reuters) – China Evergrande announced on Monday that it had asked the Hong Kong Stock Exchange to authorize the resumption of its trading on Tuesday, adding that it had no additional inside information to declare.
Trading in the troubled Chinese property developer’s shares was suspended on Thursday before the company announced that its founder, Hui Ka Yan, was being investigated for alleged “illegal acts.”
This investigation suggests that authorities could hold the company’s founder responsible for the promoter’s financial difficulties.
Hui Ka Yan is under investigation on suspicion of moving assets overseas, even as the debt-laden real estate developer struggles to complete unfinished projects, The Wall Street Journal reported Monday.
Evergrande did not respond to a Reuters request for comment.
With more than $300 billion in debt, Evergrande has become the archetype of problems in the Chinese real estate sector.
Evergrande is working to obtain agreement from its creditors to restructure its offshore debt. The process became complicated last week after the group said it was unable to issue new loans due to an investigation into its main Chinese division.
According to some analysts, the offshore debt restructuring plan now appears doomed to failure and the risks of the company’s liquidation are increasing.
(Reporting by Himanshi Akhand in Bangalore, written by AnneMarie Roantree, Corentin Chappron, edited by Kate Entringer)
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