Evergrande Chairman Hui under police control as China's property crisis deepens: Report

livemint.com:

Bloomberg. Currently, Hui is being monitored at a designated location. However, it's not yet clear why Hui is under so-called residential surveillance – a type of police action that falls short of formal detention or arrest. It is pertinent to note that residential surveillance doesn't mean HHui will be charged with a crime.

The measure means he is unable to leave the location, meet, or communicate with others without approval, based on China’s Criminal Procedure Law. As per the law, passports and identification cards must be handed to police but the process should not exceed six months. The move is the latest sign that the saga at the world’s most indebted developer has entered a new phase involving the criminal justice system.

This came after Chinese authorities escalated their involvement in the ongoing Evergrande crisis and detained personnel from the property giant’s financial subsidiary. The Shenzhen police disclosed the detentions in a social media statement on September 16 evening but provided minimal details. Among the detainees, only one was partially identified — someone with the surname 'Du', Bloomberg reported.

Evergrande is navigating through what is termed as the largest restructuring in the history of China. However, critical decisions concerning its offshore debt overhaul have been delayed till October, leaving the process in a state of uncertainty. Evergrande sits squarely in the center of a credit crisis affecting China's property market and has repercussions on the overall growth of the world’s second-largest economy.