Evergrande's Chairman Detained by Police, what's next for the indebted property developer?

Chairman of China's Evergrande has been placed under police surveillance as the company faces mounting debt and possible liquidation. The chairman of China Evergrande Group, Hui Ka Yan, has reportedly come under police scrutiny, according to Bloomberg, further adding to the uncertainties surrounding the troubled developer's future as it grapples with the increasing likelihood of liquidation. Evergrande remains the world's most heavily indebted property developer and has been at the epicentre of an unprecedented liquidity crisis in China's property sector, constituting roughly a quarter of the world's second-largest economy. The structure of Evergrande and its operational practices under Hui's leadership has come under scrutiny as the property empire began to unravel amidst increasing pressure to meet repayment obligations and complete apartment construction. How did Evergrande gain such public attention? Evergrande's meteoric growth propelled it to become one of China's largest and most profitable property developers, with sales totaling $110 billion in 2020. The official stated that Evergrande had "Blindly diversified and expanded its business." As the crisis escalated, a risk-management committee was established at the developer in December 2021, which included officials from state-owned companies to assist in its debt and asset restructuring. While direct state support for Evergrande remains uncertain, Beijing has implemented a series of measures over the past year to bolster the property sector, prioritizing the completion of unfinished homes for developers.