The China Securities Regulatory Commission (CSRC) fined the Chinese real estate giant Evergrande with $576 million for fraudulent business practices, the agency announced on Friday.
“Between 2019 and 2020, Evergrande Real Estate fraudulently increased its revenues and profits by prematurely recognizing revenue, which resulted in the fraudulent issuance of publicly offered bonds in the foreign exchange market.”CSRC said in a statement.
The CSRC also announced a US$6.5 million fine to Evergrande founder Xu Jiayin, also known as Hui Ka Yan, who will be banned for life from accessing the stock market.
Evergrande was China’s largest real estate company and helped the country’s rapid economic growth over the past decades. But its enormous debt has made the company a symbol of the long crisis in the Chinese real estate sector.
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Source: Gestion
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