The Evergrande unit was being probed by the Chinese securities regulator for suspected violation of information disclosure.
As of end-July, Hengda Real Estate's unpaid debts due totalled about 277.5 billion yuan ($38 billion), and it had 1,931 pending litigation cases.
"Holders of the company’s securities and potential investors of the company are advised to exercise caution when dealing in the securities of the company," Hui Ka Yan, chairman of China Evergrande Group, said in the Sunday filing to the Hong Kong Stock Exchange.
With more than $300 billion in total liabilities, including offshore debt, Evergrande has been at the centre of a property debt crisis, in which multiple Chinese developers have defaulted over the past year, forcing many to enter debt restructuring talks.
Evergrande on March 22 announced plans for the restructuring of $22.7 billion in offshore debt.
The group needs approval from more than 75% of the holders of each debt class to approve the plan, which offers creditors a basket of options to swap debt for new bonds and equity-linked instruments backed by its stocks and those of its Hong Kong-listed units.
($1 = 7.2980 Chinese yuan renminbi)
