HONG KONG, Sept 28 Reuters Trading in shares of China Evergrande Group was suspended on Thursday after a report that its chairman had been placed under police watch, as concerns mounted about the cashstrapped developer39;s future amid growing liquidation risk.

With more than 300 billion in liabilities roughly the size of Finland39;s gross domestic product Evergrande has become the poster child of a debt crisis in China39;s property sector, which contributes to roughly a quarter of the economy.

Trading in the shares of Evergrande and two of its units were suspended on Thursday, a day after Bloomberg reported that its Chairman Hui Ka Yan was taken away by police this month and was being monitored at a designated location.

The report said it was not clear why Hui was under surveillance and Reuters could not immediately verify the news. Evergrande and the police authorities have not responded to Reuters requests for comment.

Evergrande has been working to get creditors39; approval for restructuring its offshore debt. The process got complicated this week after Evergrande said it was unable to issue new debt due to an investigation into its main China unit.

The offshore debt restructuring plan now looks set to falter and the risks of the company being liquidated are rising, some analysts said.

Reuters reported on Tuesday that a major Evergrande offshore creditor group was planning to join a liquidation court petition filed against the developer if it does not submit a…