Evergrande's billionaire chairman Hui Ka Yan is accused of crimes; stocks remain suspended: What we know so far

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real estate magnate, whose heavily indebted conglomerate has caused significant financial losses for investors, homeowners and suppliers. Authorities notified Evergrande that Hui had been subject to “mandatory measures" due to “suspicion of illegal crimes". On September 28, the company made an official announcement to the Hong Kong Stock Exchange.

Evergrande, in its communication, clarified that trading in the company's shares will stay suspended until more information is shared. The statement, however, did not disclose the particulars of the measures taken or the exact nature of the alleged wrongdoings. The announcement comes a day after people familiar with the matter told Bloomberg News that Hui was taken away by Chinese police earlier this month and put under so-called residential surveillance, a type of police action that falls short of formal detention or arrest.

Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here! While details of the allegations against Hui remain unclear, authorities earlier this month detained some staff at Evergrande’s wealth management arm. The unit said on Aug. 31 that it couldn’t make payments on products held by individual investors because of a liquidity crunch.

Hui's rapid decline has brought about new doubts concerning the future of Evergrande. Recent troubles with its restructuring efforts have disrupted markets and increased the possibility of a complete dissolution. This situation also adds to the challenges faced by China's troubled real estate sector as it approaches the important Golden Week sales period.