Chinese regulators accused Evergrande of inflating its revenue by tens of billions of dollars. The allegations potentially make this one of the biggest frauds ever recorded in history.
The China Securities Regulatory Commission (CSRC) has accused Hengda Real Estate – Evergrande's flagship onshore unit in the mainland – and founder Hui Ka Yan of inflating its revenue by 564 billion Chinese yuan ($78 billion) in 2019 and 2020, according to an exchange filing. The regulator also alleged that the firm issued bonds based on falsified documents.
CSRC imposed a 4.2 billion yuan fine on Hengda. Hui was slapped with a 57 million yuan fine and a ban for life from the securities market. Other Hengda executives were also issued fines and market bans.
This marks yet another chapter in the downfall of Evergrande and property tycoon Hui. In January, the world’s most indebted developer was delivered a liquidation order by a Hong Kong court.
