Experts: Evergrande faces growing liquidation risk

The offshore debt restructuring plan of China Evergrande Group, one of China's largest private property developers, is very likely to be postponed, and the company faces an increasing risk of liquidation, industry experts said on Friday.

They made the comments as Hui Ka Yan, Evergrande's founder, who is also known as Xu Jiayin on the Chinese mainland, has been subject to mandatory measures in accordance with the law due to suspected crimes, according to a statement to the Hong Kong Stock Exchange late on Thursday.

"The mandatory measures on Hui added major variables to Evergrande's debt restructuring plan. Without a decision-maker, the plan is expected to be interrupted and delayed for a period of time," said Zhang Hongwei, founder of Jingjian Consulting, a Shanghai-based consulting firm specializing in the property sector.