Chinese Real Estate Developer Evergrand’s Electric Car Branch President Under Investigation

On Monday, the heavily indebted Chinese real estate development group Evergrand announced that authorities have suspended the head of their electric vehicle branch.

Evergrand said in a statement on the Hong Kong Stock Exchange that its CEO, Liuyong Ju, has been suspended by law due to suspicion of committing crimes.
Evergrande, formerly China’s largest real estate development company, had debts worth $300 billion, and its problems have become a symbol of the real estate crisis in the country.

News emerged about the detention of Leo following Evergrand’s announcement in September that the Chairman of the group’s Board of Directors, Shu Jiayin, was under “compulsory measures” imposed by the Chinese authorities for “crimes”.

Evergrand EV, established in 2019, stated its ambition to become the leading producer of electric cars within just three to five years.

However, as the parent company faced increasing financial crises, this greatly impacted the cash flow of the electric car unit and its growth prospects.
In March 2023, “Evergrand InF” indicated difficulties in securing the liquidity necessary for its continuity.

The trading of the company’s stocks on the Hong Kong Stock Exchange was halted on both sides, based on the company’s request, as announced in a statement.
However, she later requested the resumption of trading at 1:00 p.m. (05:00 GMT), as mentioned in the subsequent announcement.

Beijing AFP