Shares fell Monday in Asia, with Hong Kong’s benchmark pulled lower by property stocks following reports that police had detained staff at the wealth management…
Shares fell Monday in Asia, with Hong Kong’s benchmark pulled lower by property stocks following reports that police had detained staff at the wealth management business of troubled real estate developer China Evergrande.
U.S. futures edged higher and oil prices advanced.
Tokyo’s markets were closed for a national holiday.
On Friday, China’s national financial regulator announced it had approved the takeover of the group’s life insurance arm by a new state-owned entity. On Saturday, police in the southern city of Shenzhen, where Evergrande is based, announced the arrests of some staff of its wealth management business.
Defaults on debts in the property sector since 2021 have resulted in half-finished apartment buildings, disgruntled homebuyers and fears the industry’s troubles might further slow the world’s second-largest economy and shake global financial markets.
Evergrande’s Hong Kong traded shares were up 1.6% after plunging early in the session. Country Garden, another developer facing huge debt obligations amid a slowdown in the industry and a crackdown on excessive borrowing, saw its shares rise 0.
