Founder of Evergrande accused of inflating revenues by $78bn

0 202

Hui Ka Yan, the founder of Chinese property giant Evergrande, and his company are facing allegations of inflating revenues by $78 billion in the two years leading up to the firm’s default on its debt.

The country’s financial markets regulator has imposed a hefty fine of $583.5 million on Evergrande’s mainland business, Hengda Real Estate, and Mr. Hui could potentially be banned for life from China’s financial markets.The China Securities Regulatory Commission (CSRC) attributes much of the blame to Mr. Hui, once China’s richest man, accusing him of instructing staff to “falsely inflate” Hengda’s annual results in 2019 and 2020.

In addition to the fine imposed on the company, Mr. Hui himself faces a fine of $6.5 million, according to filings by Evergrande to the Shenzhen and Shanghai stock exchanges.These developments come amidst Evergrande’s ongoing financial struggles, with a Hong Kong court ordering its liquidation in January.

Source: BBC News

Leave A Reply