The electric vehicle arm of the heavily indebted China-based Evergrande property giant has reported that a key executive has been detained by authorities in China.

The Financial Times reported that Liu Yongzhuo, an executive director of China Evergrande New Energy Vehicle Group, was detained today over “suspicion of illegal crimes”, the company said in a filing to the Hong Kong stock exchange.

The news of the detention sent the company’s stock tumbling.

A Bloomberg report noted that Liu is the third executive from China Evergrande Group to have been detained after founder and Chairman Hui Ka Yan and Du Liang, the general manager of a wealth management arm of the property company.

Bloomberg also noted that Evergrande NEV Group suffered a net loss of 27.7 billion yuan in 2022 after it reported financial results for the first time in two years. Production at the company in China has been halted for several months due to a lack of funds. Furthermore, attempts to find new investors have not been successful, denting the share price further in recent weeks.

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