Evergrande says Shenzhen Stock Exchange imposes sanctions against unit, founder (updated)

China Evergrande New Energy Vehicle

22/10/2024 11:15

(Adds detail)
       Oct 22 (Reuters) - Liquidators of China Evergrande
 3333.HK  on Tuesday said the Shenzhen Stock Exchange has
published disciplinary actions against the property developer's
flagship unit Hengda Real Estate and founder Hui Ka Yan, among
other senior executives. 
    The liquidators referred to a Shenzhen Stock Exchange
document dated Sept. 30, which publicly reprimanded Hengda and
Hui after the securities watchdog found Hengda had overstated
revenue by 564 billion yuan ($79.20 billion) over two years
through 2020 and fraudulence in its bond issuance.
    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.
    ($1 = 7.1208 Chinese yuan renminbi)

 (Reporting by Clare Jim in Hong Kong and Roushni Nair in
Bengaluru; editing by Jason Neely)
 ((Roushni.Nair@thomsonreuters.com;))