China fines Evergrande US$587 mln for fraud

The China Securities Regulatory Commission (CSRC) said Friday that it had decided to fine property developer Evergrande Real Estate Group 4.175 billion yuan (US$587 million) for financial fraud and other misconduct.

Evergrande Real Estate Group inflated business revenues and profits in 2019 and 2020 during its issuance of corporate bonds, the CSRC said.

The commission also found that Evergrande released false information in its annual reports and failed to disclose required information.

Xu Jiayin, then chairman and actual controller of the property company, was fined 47 million yuan and will be prohibited from entering the securities market for life.