Evergrande Chairman Under Police Watch as Liquidation Risk Looms

The chairman of China Evergrande Group, Hui Ka Yan, has reportedly been placed under police surveillance, adding to the mounting pressure on the embattled property developer. Evergrande, the world's most indebted property developer, is facing an unprecedented liquidity crisis and the prospects of liquidation. The reported move comes as Evergrande's offshore debt restructuring plan looks set to falter, and a major creditor group is planning to join a liquidation court petition against the company. Meanwhile, another major Chinese developer, Country Garden, is also facing a bond coupon repayment deadline and is expected to delay payment. The financial woes of these industry stalwarts highlight the high default risk among private and mixed ownership developers in China's property market.