HONG KONG -- China's securities watchdog has initiated an investigation into a core subsidiary of embattled property developer China Evergrande Group.
Hengda Real Estate, Evergrange Group's unlisted domestic property arm, issued a statement on the Shanghai Stock Exchange website on Wednesday saying it received an official notification about the investigation. The company said in the statement that the China Securities Regulatory Commission is alleging a possible breach of disclosure rules by Hengda, but did not elaborate on details.
