China Evergrande Group’s chairman under probe over ‘illegal crimes’

By Necva Tastan

ISTANBUL (AA) – Chinese property developer China Evergrande Group said its chairman Hui Ka-yan is under "mandatory measures" on suspicion of "illegal crimes."

Hui Ka-yan "...has been subject to mandatory measures in accordance with the law due to suspicion of illegal crimes," according to a statement by the group submitted to the Hong Kong Stock Exchange on Thursday.

However, the company did not clarify the “measures” or the “suspected crimes.”

Evergrande also said the suspension of trading in the company's shares will continue until further instructions.

"Holders of the company’s securities and potential investors of the company are advised to exercise caution when dealing in the securities of the company," the statement added.

The company is also facing numerous lawsuits from creditors over debts amounting to 12.6 billion yuan ($1.7 billion).

Evergrande, one of China's largest companies and one of the world's largest investors in the construction industry, has failed several times in the past two years to pay its maturing foreign debt bonds.

The company, which defaulted on its debts, filed for bankruptcy protection in the US on Aug. 17.