crashnitrokart| Just now, the Shenzhen Stock Exchange made an unexpected announcement! It's about Evergrande...

SourceCrashnitrokartSecurities firm China

Hengda Xia Haijun was punished again.

May 13thCrashnitrokartThe Shenzhen Stock Exchange issued a service notice of "advance notice of Disciplinary actions" on the front page of its official website, saying that Xia Haijun was a director of China Evergrande Group, the controlling shareholder of Evergrande Real Estate Group Co., Ltd., suspected of violating No. 1 of the Shenzhen Stock Exchange's "rules on the listing of Corporate Bonds (revised in 2018)"Crashnitrokart.5, 1Crashnitrokart.6 relevant provisions of the act.

The Shenzhen Stock Exchange intends to punish it for publicly determining that it is unfit to serve as a director, supervisor, senior manager and public censure of a bond issuer for life. Data show that Xia Haijun once served as vice chairman and president of the board of directors of Evergrande Group.

It is worth mentioning that in March this year, the CSRC issued administrative penalties and market ban letters to Xu Jiayin and Xia Haijun, warned Xia Haijun on suspicion of false annual reports, fraudulent issuance, and imposed a fine of 15 million yuan, and took measures to ban Xia Haijun from the securities market for life.

Shenzhen Stock Exchange called Xia Haijun to get a ticket.

On May 13, the Shenzhen Stock Exchange issued a notice showing that Xia Haijun was suspected of violating rules 1.5 and 1.6 of the Corporate Bond listing rules (revised in 2018) when he was a director of China Evergrande Group, the controlling shareholder of Evergrande Real Estate Group Co., Ltd.

In accordance with Article 8.3 of the rules for the listing of Corporate Bonds (revised in 2018), Article 45 of the rules for the implementation of self-regulatory measures and Disciplinary actions (revised in 2018), and Article 46 of the measures for the implementation of self-regulatory measures and disciplinary actions (revised in 2020). The Shenzhen Stock Exchange intends to punish Xia Haijun for publicly determining that he is unfit to serve as a director, supervisor, senior manager and public censure of a bond issuer for life.

As Xia Haijun could not be contacted, the Shenzhen Stock Exchange now informs Xia Haijun of the proposed disciplinary action in the form of an announcement. Xia Haijun is also requested to receive the "advance notice of Disciplinary Action" at the Shenzhen Stock Exchange within 10 days from the date of the announcement. If it is not received within the time limit, it will be deemed to have been served at the expiration of the above-mentioned period, and the Shenzhen Stock Exchange will make a formal decision on disciplinary action in accordance with the relevant provisions.

The Shenzhen Stock Exchange said that in accordance with the provisions of the measures for the implementation of self-regulatory measures and disciplinary actions, Xia Haijun has the right to state and defend. If Xia Haijun has any objection to the above-mentioned disciplinary action, he shall submit a written statement and defence to the Shenzhen Stock Exchange within the time specified in the Disciplinary Action notice, and provide relevant evidence. According to the detailed rules of self-regulatory hearing procedures, Xia Haijun may also apply for a hearing. If he applies for a hearing, he shall submit it in writing to the Shenzhen Stock Exchange within the time stipulated in the "Disciplinary Action notice" and submit written statements and defences. If it is not submitted within the time limit, it shall be deemed to waive the right of hearing, statement and defense.

China Evergrande, for its part, is in liquidation and was suspended on January 29 this year. On April 30 this year, China Evergrande announced that it had delayed the publication of its annual results for the year ended December 31, 2023, due to "delays in the preparation of the company's financial statements for the year ended December 31, 2023 and the publication of results for 2023 as joint and separate liquidators are now in the process of ascertaining the current state of the company's affairs". Subsequently, a separate announcement will be issued in accordance with the listing rules on the results of 2023 and the date of publication of the 2023 annual report.

The Securities Regulatory Commission has punished him before.

In fact, the CSRC had already punished Xia Haijun before the Shenzhen Stock Exchange issued a prior notice of disciplinary punishment.

On March 18 this year, Evergrande Real Estate issued an announcement on receiving advance notice of administrative punishment and market ban from the China Securities Regulatory Commission. The CSRC will impose administrative penalties such as fines and market ban on Evergrande Real Estate, Xu Jiayin, Xia Haijun, Pan Darong, Pan Hanling, Ke Peng, Zhen Litao and Qian Cheng.

As ascertained by the SFC, Evergrande Real Estate, Xu Jiayin, Xia Haijun and others are suspected of breaking the law mainly in the following three aspects:

First, there are false records in the annual reports of 2019 and 2020 disclosed by Evergrande Real Estate. Evergrande Real Estate made financial fraud by recognizing income in advance, resulting in a false increase of 213.989 billion yuan in income in 2019, accounting for 50.14% of the current operating income. the corresponding inflated cost was 173.267 billion yuan, and the inflated profit was 40.722 billion yuan, accounting for 63.31% of the total profit in the current period. In 2020, Evergrande Real Estate falsely increased its income by 350.157 billion yuan, accounting for 78.54% of the current operating income, corresponding to a false increase of 298.868 billion yuan in costs and 51.289 billion yuan in profits, accounting for 86.88% of the total profits of the current period.

Second, Evergrande Real Estate publicly issued corporate bonds suspected of fraudulent issuance. The CSRC pointed out that four bonds issued by Evergrande in 2020, bonds totaling 12.6 billion yuan, and bonds with a total size of 8.2 billion yuan on April 27, 2021, were suspected of fraudulent issuance because the issuance documents announced in the issuance process cited relevant data from the 2019 and 2020 annual reports with false records.

Third, Evergrande failed to disclose relevant information in a timely manner in accordance with the regulations, this includes: Evergrande failed to disclose the annual report of 2021, the interim report of 2022 and the annual report of 2022, failed to disclose the situation of major litigation and arbitration in accordance with the regulations, and failed to disclose the failure to repay the debts due as required.

With regard to the illegal acts involved in Xia Haijun, the CSRC pointed out that Xia Haijun, then vice chairman and president of Evergrande Group, actually co-ordinated the management of Evergrande real estate's daily business affairs, organized and arranged to prepare false financial reports, and the means were particularly bad. the circumstances are particularly serious, and he is directly in charge.

The CSRC said that Xu Jiayin, then chairman of Evergrande Real Estate, and Xia Haijun, then vice chairman and president of China Evergrande, made decisions and organized the implementation of financial fraud, and the means were particularly bad and the circumstances were particularly serious. Xu Jiayin and Xia Haijun were fined 47 million yuan and 15 million yuan respectively, and measures were taken to ban access to the securities market for life.