(Reuters) -Liquidators of China Evergrande 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)
