Staff of embattled property developer Evergrande's wealth management unit have been detained by police in Shenzhen, southern China.

In a post on social media police called on the public to report any cases of suspected fraud.


Meanwhile, the takeover of the firm's insurance arm by a newly created state-owned insurer was announced on Friday.

Evergrande is at the centre of a crisis that has engulfed China's real estate industry since 2021.

"Recently, public security organs took criminal compulsory measures against Du and other suspected criminals at Evergrande Financial Wealth Management Co," Shenzhen Nanshan District Police Bureau said on Saturday.

More  than the person known only as Du, no more information was provided regarding the number of people detained, their identities, or the potential charges they might be facing.

Investors may register complaints with the authorities, according to police, who also stated that the situation is still being investigated.


Evergrande Financial Wealth Management Co. is a wholly-owned unit of Evergrande, which was established in 2015 and is based in Shenzhen.

According to his Linkedin profile, Du Liang is the general manager of Evergrande Financial Wealth Management. It wasn’t verified whether he was among those detained by police.


According to a plan unveiled on Friday by China's National Administration of Financial Regulation (NAFR), state-owned Haigang Life Insurance Co. Ltd. will take over the assets and liabilities of Evergrande Life Assurance.

After reversing a 25% drop earlier in the day, Evergrande shares were trading flat on Monday afternoon.

Beijing has been making it more challenging for real estate developers to acquire loans since 2020.

Evergrande, once one of China's largest corporations, accumulated debts of more than $300 billion (£242 billion) as it expanded quickly.

After going into default on its loans and suffering significant losses, it is currently working to restructure its firm.


China's real estate industry is a key part of the world's second largest economy

Some experts fear the crisis in the sector could threaten to destabilise the economy and spill over into the global financial markets.

Beijing has also been conducting a crackdown on alleged corruption in the country's financial sector for more than two years.


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