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Evergrande Probe Shows Seized $2.1 Billion Was Pledged Last Year

  • Developer has set up an independent investigation committee
  • Investors in dark over how cash came to be used as security

China Evergrande Group said a preliminary investigation showed that $2.1 billion of deposits at its property-services unit was pledged last year as the embattled developer’s slide into distress accelerated. 

The company has set up an independent investigation committee to look into the pledges that have been enforced by banks, according to a statement to the Hong Kong stock exchange late Tuesday.