Photo By: Wall Street Journal

Staff of embattled property developer Evergrande’s wealth management unit have been detained by police in Shenzhen, southern China.

In a post on social media police called on the public to report any cases of suspected fraud.

Meanwhile, the takeover of the firm’s insurance arm by a newly created state-owned insurer was announced on Friday.

Evergrande is at the centre of a crisis that has engulfed China’s real estate industry since 2021.

Shenzhen Nanshan District Police Bureau said on Saturday that recently, public security organs took criminal compulsory measures against Du and other suspected criminals at Evergrande Financial Wealth Management Co.

No further details were given on how many people were detained, their identities – except for the person identified only as Du – or what charges they could face.

Police also said the case is still under investigation and investors could file complaints to authorities.