Evergrande Staff Detained in China's First Criminal Probe of Company's Debt Crisis

Chinese police detained staff at Evergrande's wealth management unit over allegations of illegal fundraising from investors. This is the first criminal probe into Evergrande since its debt crisis.

Evergrande Wealth is accused of illegally pooling funds, violating contracts, and misdirecting investments, causing investor losses.

One detained staff member is reportedly the general manager and legal representative of Evergrande Wealth.

Evergrande Wealth raised over $12 billion from individual and corporate investors through wealth products. Over $4 billion remains unpaid.

The detention aims to facilitate investor compensation and stabilize markets. Evergrande is undergoing a debt restructuring after defaulting in 2021.