The share price of Chinese developer “Evergrande” recorded sharp losses of about 25 percent as trading began on the Hong Kong Stock Exchange on Monday, after police arrested a number of employees of the heavily indebted group. The company's share price fell to $0.47 after ending trading Friday before the weekend at a price of 0.62.
The decline comes after police in the southern Chinese city of Shenzhen announced the arrest of a number of employees of Evergrande Wealth Management, a financial subsidiary of the real estate group.
The real estate sector, along with the construction sector, contributes about a quarter of China's GDP and is one of the pillars of economic growth in the country, especially in light of the boom witnessed over the past decades.
Source (Al-Arabiya.net Website, Edited)
