The repayment problem triggered a cross-default clause on the property company’s outstanding $300 million offshore bond issue. Following a CSRC investigation, its chairman and major shareholder, Zhong Yu, was taken into custody in early May. The stock was then suspended at the start of this month. (The CSRC announced that Zhong had been embezzling funds, while the company had provided guarantees for his fundraising activities without knowing what they were for.)