Evergrande chair "subject to mandatory measures" amid suspicion of crimes

Investing.com -- China Evergrande Group (HK:3333) has said that chair Hui Ka Yan has been "subject to mandatory measures" in relation to suspicion of crimes.

In a filing with the Hong Kong Stock Exchange on Thursday, the embattled property developer did not provide further details, saying only that it had "received notification from relevant authorities" regarding the matter.

Trading in Evergrande shares was halted in Hong Kong earlier on Thursday. The move came after Bloomberg News had previously reported that Hui was taken away by police this month and is being monitored at a designated location. The company said the stock will remain suspended until further notice.

Heavily-indebted Evergrande has become a focal point of a liquidity crisis in China's key property sector, which accounts for about a fourth of the world's second-largest economy.

Evergrande has been attempting to gain creditors' approval to restructure its offshore debt, although this process was complicated when the company announced over the weekend that it would not be able to issue new debt because of an investigation into its mainland China division. That unit also missed a deadline to make 4 billion yuan in prinicipal and interest payments earlier this week.