A subsidiary of real estate giant Evergrande Group said on Monday Chinese regulators would ban its chairman from the securities market for life, adding that the troubled company would be slapped with a hefty fine.
The company’s flagship subsidiary, Evergrande Real Estate, said in a filing with the Shenzhen Stock Exchange that the China Securities Regulatory Commission “plans to issue a ruling to impose a lifetime securities market ban on Xu Jiayin (chairman).”
Evergrande “received advance notice of administrative penalties and market bans from the China Securities Regulatory Commission for … violations of laws and regulations,” the document said.
The company itself will be “ordered to make corrections and given a warning and a fine of 4.175 billion yuan ($580 million).”
The ruling will conclude that Xu “made decisions and organized the implementation of financial fraud with particularly egregious means and serious circumstances,” the document said.
He will also “give a warning and impose a fine of 47 million yuan.”
Evergrande’s astronomical debt has become a powerful symbol of the years-long crisis in China’s real estate market, with knock-on effects for the world’s second-largest economy.
In January, a Hong Kong court issued a winding-up order against Evergrande, although the company said its operations on the mainland would not be affected by the decision.
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