The company said in a release to mainland Chinese stock exchanges late Monday that its chairman,
The notice cited a preliminary ruling by the
Evergrande is the world's most indebted property developer, with more than
Regulators are striving to reassure investors after Chinese markets slumped in the past year, in tandem with the downturn in the property market. Even after regulators announced a raft of new policies to support the markets, pledging to root out insider trading and other abuses, the Shanghai Composite index is still 5.8% below its level a year earlier, and
The fallout from the property crisis has also affected China’s shadow banking industry — institutions that provide financial services similar to banks but operate outside of banking regulations.
A Chinese media report said police in
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Real estate helped fuel China’s economic boom as families bought into one of the few potentially high-yielding assets available for investment. But developers borrowed heavily as they turned cities into forests of apartment and office towers, pushing total corporate, government and household debt to more than 300% of the country's annual economic output, unusually high for a middle-income country.
The government has stepped up support for the real estate industry, listing thousands of projects eligible for loans from state banks that stepping up to help contain the damage. Party leaders have emphasized that they want to ensure that families are able to obtain housing they have paid for.
The notice by Evergrande said regulators found it had overstated its revenue in 2019 by
The CSRC also suspects problems with bonds Evergrande issued, it said.
Hui, as chairman, was “the person in charge who is directly responsible and at the same time serves as the actual controller of the organization and guidance,” it said. “The means were particularly bad and the circumstances were particularly serious.”
It also named and fined other Evergrande executives that it said were responsible for the falsified reports and had “behaved badly.”
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