Shares of China Evergrande Group
were suspended on Thursday, Hong Kong’s exchange announced.
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.
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.
Evergrande defaulted in 2021 and announced an offshore debt restructuring program in March, having struggled to finish projects and repay suppliers and lenders.