The stocks of China Evergrande New Energy Vehicle Group plunged by more than 15 percent on Monday, as one of the companys executive directors was detained recently for violating the law.
The electric vehicle arm of the property developer China Evergrande Group announced in a filing to the Hong Kong Stock Exchange on Monday that its executive director Liu Yongzhuo was detained on suspicion of violating the law.
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Stock trading was resumed at 13:00 pm on Monday after it was temporarily suspended in the morning session, pending a statement from the company.
The stock plunged 18.6 percent in the first week of 2024 after it said on January 1 that plans for it to sell shares to the US-listed NWTN had been scrapped.
This comes after Hui Ka Yan, founder of Evergrande, was placed under mandatory measures, according to a filing of the company in September.
China Evergrande said that it received notification from relevant authorities that Hui Ka Yan, an executive director of the company and chairman of the board of directors of the company, has been subject to mandatory measures in accordance with the law due to suspicion of committing serious criminal acts.
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