Shares of Evergrande have been suspended, Hong Kong’s exchange announced Thursday.
The chairman of the embattled Chinese real estate developer has reportedly been placed under surveillance, according to Bloomberg News.
Evergrande shares last closed at 32 Hong Kong cents on Wednesday.
This is not the first time that Evergrande’s shares have been suspended. Trading was suspended in March last year and only resumed trading on Aug. 28, after a 17 month hiatus.
Earlier this month, Evergrande delayed a debt restructuring meeting with creditors, saying in a filing “the sales of the Group has not been as expected by the company” since its March debt restructuring announcement.
As such, Evergrande “considers it necessary to re-assess the terms of the proposed restructuring to meet the company’s objective situation and the demand of the creditors.”
The company also revealed that due to an investigation into subsidiary Hengda Real Estate, it was unable to issue new notes under its debt restructuring plan.
Reuters reported the Evergrande unit was being investigated by the Chinese securities regulator for suspected violation of information disclosure.
The latest development comes a week after police detained some staff at Evergrande’s wealth management unit.
In August, Evergrande applied for Chapter 15 bankruptcy protection in a U.S. court, which allows a U.S. bankruptcy court to intervene in cross-border insolvency cases involving foreign companies that are undergoing restructuring from creditors.
Tianji Holdings, an affiliate of Evergrande, and its subsidiary, Scenery Journey, also filed for Chapter 15 protection in Manhattan bankruptcy court, according to the filing.
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