Chinese police descended upon the financial services arm of doomed property giant Evergrande on Saturday night, arresting numerous employees at the company’s Shenzhen offices, possibly including General Manager Du Liang.
The South China Morning Post (SCMP) reported that the arrests followed Friday’s takeover of the Evergrande life insurance company by a state-owned firm and Saturday’s announcement that a case had been filed against the Evergrande Financial Wealth Management Company over violations of disclosure regulations.
Shenzhen police did not reveal exactly how many people they arrested, but the SCMP noticed a reference to “Du” as the surname of one detainee. The general manager of the Evergrande financial subsidiary is named Du Liang.
Du faced an angry mob of investors two weeks ago after they were unable to recover the money they poured into Evergrande investments. Surrounded by security guards linked into a human chain to hold irate customers at bay, Du admitted he was able to get his own money back in May because he faced “some family issues” and needed the funds.
The crowd was not mollified by his explanation; in fact, one woman collapsed, prompting a weary-looking Du to explain that it was simply impossible to pay off the $5.5 billion in mature investment products to some 200,000 investors. Evergrande management previously proposed payoff schemes, like repaying investors in installments or offering them property in lieu of cash repayment.
American Buddhist Net 