In the latest turn of events, China Evergrande New Energy Vehicle Group Ltd, the electric vehicle (EV) unit of China Evergrande Group (OTC:EGRNF), experienced a significant 23% fall in share value on Monday following the arrest of its executive director.

What Happened: Hong Kong-listed shares of China Evergrande’s EV division plummeted sharply on Monday. The dip came in the wake of the company revealing that executive director Mr. Liu Yongzhuo had been apprehended on suspicion of illegitimate activities.

"The company has learned that its executive director Mr. Liu Yongzhuo has been detained in accordance with the law on suspicion of illegal crimes," Evergrande NEV announced in a filing to the Hong Kong exchange, reported CNBC.

The company has yet to disclose further information regarding the allegations or the precise timing of Mr. Yongzhuo’s detainment.

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Trading of the company’s shares was suspended before the market opening in Hong Kong on Monday, resuming at 1 p.m. local time. This incident comes on the heels of a significant 18% drop in Evergrande NEV shares last week after the termination of a planned share sale to U.S.-listed NWTN Inc (NASDAQ:NWTN).

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