HONG KONG (AP) — Trading in shares of heavily indebted Chinese property developer China Evergrande Group was suspended in Hong Kong on Thursday, according to a notice on the Hong Kong stock exchange.
China Evergrande said in a notice on Thursday night that authorities had informed the firm that its chairman, Hui Ka Yan, had been subjected to “mandatory measures in accordance with the law due to suspicion of illegal crimes” and said that trading in the firm’s shares was suspended until further notice.
The company didn’t elaborate on the crimes that Hui was suspected of.
Evergrande is the world’s most heavily indebted real estate developer and is at the center of a property market crisis that is dragging on China’s economic growth.
From the looks of it, the Chinese government suspended trading of the Evergrande stock. There's not a lot of details on this, but it seems like it's the Chinese government that did it. My question is whether the U.S. government has the same power, and if there's a historical precedent where the U.S. suspended the trading of a particular stock for whatever reason.