Shares of Chinese real estate giant Evergrande Group plunged 25% on Monday after police arrested several staff at its wealth management unit.
This in turn triggered investors' concerns about the new problems faced by the real estate company.
On Sunday, police in the southern city of Shenzhen reportedly arrested several employees at its financial subsidiary, Evergrande Wealth Management.
However, police did not list charges against the arrested workers but urged the public to report any suspected fraud.
Evergrande is one of China's biggest debt-laden developer firms amid a property market crisis that has dragged down the country's economic growth.
The group is undergoing a restructuring plan, including offloading assets to avoid a default on $340 trillion in debt.
The drastic fall in the firm's shares in the Asian session also dragged China's CSI 300 index down to its lowest level this year.
Last month, Evergrande posted a net loss in the first half of 2023 of 33 billion yuan ($4.5 billion) compared with a loss of 66.4 billion yuan in the same period of 2022.
