The founder and chairman of embattled major property developer China Evergrande Group has been put under police control in the Asian country, Bloomberg reported Wednesday, citing people with knowledge of the matter.
Hui Ka Yan was taken away by police earlier this month and is being monitored at a designated location. It is unclear why he has been under so-called residential surveillance, a type of police action that falls short of formal detention or arrest, the news agency said.
In August, the company based in southern China's Guangdong Province filed for bankruptcy in a New York court. As of late June, it was saddled with 2.39 trillion yuan ($327 billion) in total liabilities.
Chinese business news outlet Caixin said Monday that former Evergrande CEO Xia Haijun and Pan Darong, a previous chief financial officer of the group, have been detained by authorities as they investigate whether the conglomerate has violated rules over how funds can be used.
Foreign Ministry spokesman Wang Wenbin said at a press conference Wednesday that he is not aware of Hui's situation.
