Chinese Police Detain Some Staff Of Evergrande’s Wealth Management

By Lallalit Srijandorn of FXStreet

Where Forex Never Rests • Sep 17, 2023 at 8:02 PM EDT

With important decisions about overhauling debt have left China's largest restructuring up in the air, Shenzhen police have "detained" some personnel from Evergrande's financial subsidiary. As of overnight, the significance is still obscured.

Evergrande is one of China's top property developer firms amid a property market crisis that is retarding China's economic development. To avoid defaulting on $340 billion in debt, the group is undergoing reorganization, which includes the sale of assets.

Police in southern China have arrested several employees of China Evergrande Group's wealth management branch, implying a fresh probe that might exacerbate the property giant's problems.

"Recently, public security organs took criminal compulsory measures against Du and other suspected criminals at Evergrande Financial Wealth Management Co.,” according to Reuters.

However, China Evergrande did not immediately react to a response request made on Sunday after normal business hours.

Market reaction

This headline had little to no impact on the US Dollar's performance against its rivals Monday morning. As of writing, the US Dollar Index was down 0.04% on the day at 105.29.

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