China’s securities regulator has accused Evergrande and its founder Hui Ka Yan of inflating its mainland Chinese revenues by almost $80bn over 2019 and 2020, in the first detailed allegations by authorities to shed light on the failure of the world’s most indebted property developer.
The China Securities Regulatory Commission plans to impose a Rmb4.2bn ($580mn) fine on Hengda Real Estate, Evergrande’s mainland business, according to a filing by the company to the Shenzhen and Shanghai stock exchanges that included accusations of false documentation in financial reports.
The filing cited a CSRC preliminary decision as saying Hui, once China’s richest man, would be fined Rmb47mn and faced being banned for life from the country’s markets. It accused him of “instructing other personnel” to inflate company metrics.