Chinese property giant Evergrande fined US$576 million for 'fraud'
The CSRC also imposed a maximum fine of US$6.5 million on Evergrande founder Xu Jiayin
Add BT as a preferred source
CHINA’S deeply indebted property giant Evergrande has been fined US$576 million for fraudulent business practices, Beijing’s financial regulatory body said on Friday (May 31).
“Between 2019 and 2020, Evergrande Real Estate falsely increased its revenue and profit by prematurely recognising revenue, resulting in the fraudulent issuance of bonds publicly offered on the exchange market,” the China Securities Regulatory Commission (CSRC) said in a statement.
It added that the firm had “failed to disclose regular reports as scheduled, failed to disclose major litigation and arbitration as required and failed to disclose failure to settle debts due as required.”
The CSRC said it had also imposed a maximum fine of US$6.5 million on Evergrande founder Xu Jiayin, also known as Hui Ka Yan, banning him from the securities market for life.
Evergrande was once China’s biggest real estate firm, a powerhouse in a sector that helped propel the country’s rapid economic growth during recent decades.
But its spiralling debt become emblematic of a prolonged crisis in China’s real estate sector.
Struggling to repay creditors for years, it defaulted in 2021. AFP
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh
What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future
‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse
Rare brutalist Singapore house opens to the public before changing hands
