Monday, January 8, 2024, 3:15 p.m.
The Chinese company Evergrande New Energy Vehicle (Evergrande NEV), an electric vehicle subsidiary of the real estate giant Evergrande, has confirmed the arrest of its CEO and vice president, Liu Yongzhuo, for “suspicions of illegal practices.”
The company is going through significant economic difficulties, plagued by difficulties in meeting its debt.
The company requested the Hong Kong Stock Exchange to temporarily suspend trading in its shares, which fell by 23.8%, although after trading again in the last part of the session they managed to stop the fall to 9.64%. .
The arrest of the executive director of Evergrande NEV, of which the company has not provided more details, adds to the investigation opened last September into the president and CEO of the Evergrande group, Hui Ka Yan, who has remained under house arrest since then. .
Evergrande's electric vehicle unit was launched as a subsidiary of the Chinese property giant in 2019 as part of its expansion outside the sector.
In March 2023, Evergrande NEV publicly acknowledged its difficulties in raising enough liquidity to sustain its operations and recently had to address the failure of a deal to sell its stake in NWTN.
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