China Evergrande Group’s shares jumped when they resumed trading in Hong Kong, after a two-day halt to announce that its founder and chairman Hui Ka-yan has been placed under so-called ‘mandatory measures’ by the police in mainland China.
Evergrande shares jumped by 9.4 per cent to 35 Hong Kong cents as soon as trading resumed, and soared by as much as 28 per cent within minutes. Shares of the company’s Evergrande Property Services unit rose 6.8 per cent to 63 Hong Kong cents.
Shares of China Evergrande New Energy Vehicle Group, which fell 20 per cent to 56 Hong Kong cents the last time they traded, are still suspended.
The Shenzhen-based developer said it had been notified by relevant authorities in China that Hui was subject to mandatory measures, according to the exchange filing. It did not elaborate. The term can include house arrest, among others, in local regulatory parlance, analysts said.
More to follow …
