Evergrande, the embattled Chinese property giant that is struggling under debts running into the hundreds of billions of dollars, was plunged into further turmoil after police in China arrested several employees at a subsidiary.
Employees at Evergrande’s financial subsidiary, Evergrande Wealth Management, were arrested, police in the southern city of Shenzhen said in a statement, without specifying the number of employees or the charges against them.
Police also urged the public to report any cases of suspected fraud to the authorities.
Evergrande, the world’s most indebted developer with liabilities of $340 billion, said earlier this month that it had delayed creditors’ meetings from September to October.
Another Chinese property giant, Country Garden, has narrowly avoided default in recent months, after reporting a record loss and debts of more than $150 billion.