China Evergrande Group founder Xu Jiayin will be banned from the securities market for life and fined 47 million yuan after regulators accused the group's flagship unit of falsely reporting results, securities fraud and failing to disclose information in a timely manner.
On the 18th, Evergrande Real Estate issued the "Announcement on Receiving Advance Notification of Administrative Penalty and Market Ban from the China Securities Regulatory Commission" stating that the China Securities Regulatory Commission also punished the company and several of its former executives after investigation.
Regarding the three violations of laws and regulations by Evergrande Real Estate, the China Securities Regulatory Commission plans to decide:
1. Order Evergrande Real Estate to make corrections, give a warning, and impose a fine of 4.175 million yuan;
2. Give Xu Jiayin a warning and impose a fine of 47 million yuan;
3. Give Xia Haijun a warning and impose a fine of 15 million yuan;
4. Give Pan Darong and Pan Hanling a warning and impose a fine of 9 million yuan each;
5. Give Ke Peng a warning and impose a fine of 3 million yuan;
6. Impose a fine of 2 million yuan on Zhen Litao;
7. Give Qian Cheng a warning and impose a fine of 200,000 yuan.
Xu Jiayin made decisions and organized the implementation of financial fraud with particularly egregious means and particularly serious circumstances. Xia Haijun organized and arranged the preparation of false financial reports with particularly egregious means and particularly serious circumstances. According to Article 221 of the Securities Law and the 2015 Securities According to the provisions of Article 3, Paragraph 1 and Article 5, Paragraph 3 of the "Market Exclusion Provisions" (CSRC Order No. 115), the China Securities Regulatory Commission plans to decide to impose lifelong bans on Xu Jiayin and Xia Haijun from the securities market.
On the evening of September 28 last year, China Evergrande announced on the Hong Kong Stock Exchange that the company had received notice from relevant departments that the company’s executive director and chairman of the board of directors Xu Jiayin had been involved in illegal crimes and had been subject to compulsory measures in accordance with the law. The announcement also stated that the company’s shares will stop selling on the Stock Exchange from 9 a.m. on September 28. Trading in the Company's shares will continue to be suspended until further notice.
On the evening of September 28, Evergrande Real Estate Group Co., Ltd. issued an announcement stating that as of the end of August 2023, the company and its consolidated subsidiaries (issuers) had a total of 1,946 pending litigation cases with a subject amount of more than 30 million yuan. The total amount is approximately RMB 449.298 billion. As of the end of August 2023, the issuer's unpaid maturing debts had accumulated approximately RMB 278.532 billion; in addition, as of the end of August 2023, the issuer's overdue commercial bills had accumulated approximately RMB 206.777 billion.
