Shenzhen Stock Exchange has imposed sanctions on the flagship real estate unit of China Evergrande and its bosses, according to liquidators of the embattled property giant.
The exchange punished Hengda Real Estate and founder Hui Ka Yan, plus other senior executives late last month, they said on Tuesday.
The liquidators referred to a Shenzhen Stock Exchange document dated September 30, which publicly reprimanded Hengda and Hui after the securities watchdog found Hengda overstated revenue by 564 billion yuan ($78 billion) over two years through 2020 and fraudulent bond issuance.
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Life bans for Hui, CEO
Hengda applications to issue bonds or transfer shares will not be accepted for three years, it said, and Hui and former CEO Xia Haijun will be banned for life from the roles of director or senior executive in any bond issuer.
The Shenzhen Stock Exchange added that it rejected Hui’s defence that he was not aware of the inflated revenues and bond issuance as he did not oversee the company’s finances.
Evergrande’s liquidators said in the Tuesday filing that they have no further information on the investigation of the Shenzhen Stock Exchange, and shares of Evergrande will remain suspended.
With more than $300 billion in total liabilities, Evergrande is the world’s most indebted property developer. It was ordered by a Hong Kong court to liquidate in January after defaulting on its offshore debt in late 2021.
- Reuters with additional editing by Jim Pollard
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