Evergrande shares surged as much as 42 per cent on Tuesday after resuming trading in Hong Kong after a suspension.
Trading in the shares of the indebted Chinese property group and its affiliated companies was suspended on Thursday following a Bloomberg report that chair Hui Ka Yan was under police surveillance.
On Friday, the group said its chair and founder was under suspicion of involvement in “illegal crimes”.
Evergrande had earlier said an official investigation had stopped it from issuing new notes, effectively preventing a planned restructuring agreement with international creditors from going ahead.
Evergrande’s shares later pared gains to be up about 14 per cent in late morning trading.
Shares in Evergrande New Energy Vehicle, the company’s electric carmaking affiliate, remained suspended on Tuesday.
Read More: Live news: Evergrande shares surge up to 42% as Hong Kong trading resumes