来源：钛媒体
TMTPost -- China’s top securities regulator decided to impose harsh punishment on Hui Ka Yan, also known as Xu Jiayin, founder and chairman of China Evergrande Group, a heavily indebted property developer.
Credit：Visual China
The China Securities Regulatory Commission (CSRC) plans to impose administrative penalties and market bans to Evergrande Real Estate Group, a unit of China Evergrande Group (Evergrande), and a host of senior executives of Evergrande including Hui, according to filings with the Shanghai and Shenzhen stock exchanges on Monday. As parts of penalties, Hui will be fined RMB47 million (around US$6.63 million) and banned from securities market activities for life, and Xia Haijun, the vice chairman and president of Evergrande who also face a lifetime ban, received a fine of RMB15 million, the fillings cited an advanced notice of CSRC. Evergrande Real Estate Group will have to pay a RMB 4.18 billion fine while receiving a warning from CSRC.
CSRC accused Hui of "making decisions on and organizing financial fraud" as it identified he and other executives as well as their real estate subsidiary have committed three severe suspicious activities. The first is to report false annual financial reports for the year 2019 and 2020, inflating the two-year revenue by a total of RMB 564.15 billion and the income that period by RMB 92.01 billion. The real estate company was suspected to make false issuance, involving a combine RMB20.8 billion in corporate bonds over these two years with fraudulent data from annual reports. The company was also alleged to fail to timely disclose relevant information, such as to submit annual reports for 2021 and 2022, to disclose major litigation and arbitration cases, and to disclose its failure to repay maturing debts.
The latest punishment was a further hit for Hui and his empire, which, first declared a default on its debt in late 2021 when the second largest property developer in China had a total of more than US$300 billion in liabilities. Financial reports disclosed in April showed the company’s debt load reached RMB2.44 trillion as of December 31, 2022, reducing RMB140 billion from late 2021. The insolvency gap increased from RMB 473.1 billion to RMB599.1 during the year 2022.
Evergrande disclosed last September that Hui has been subject to “mandatory measures” under the law “due to suspicion of illegal crimes”, without giving any details. Hui was taken away along with his younger son Peter Xu, who used to lead Evergrande’s wealth unit, Chinese business and financial media outlet Yicai then cited an insider. Prior to Hui and his son, a number of former Evergrande executives were said to be detained. The first executive to be taken away was Ke Peng, the former executive president of Evergrande, who was nabbed by the police for investigation in January in connection with his involvement in Evergrande's Shenzhen’s shanty town revamping. On September 16, Du Liang, the general manager of Evergrande Wealth Management, Evergrande's financial subsidiary, and other individuals suspected of crimes were taken into custody by the Shenzhen police. A week ago, Zhu Jialin, the former Chairman of Evergrande Life Assurance, was reported to be under investigation. Pan Darong, former chief financial officer who resigned in July, 2022, was said earlier this week to have been detained by Chinese authorities.
Further legal actions are set to be taken against Hui, Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at the Renmin University of China, told the Global Times on Monday. The action taken against Hui exemplifies the enforcement of stringent regulatory measures as the CSRC is ramping up efforts to impose stricter regulation, Dong said. CSRC released four policy documents last Friday to enhance supervision and management of the capital market and prevent risks, vowing to promote the high-quality development of the stock market.
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