The China Securities Regulatory Commission issued a fine to Xia Haijun, then vice chairman of the board of directors and president of China Evergrande Group! According to an administrative penalty decision updated by the China Securities Regulatory Commission, the China Securities Regulatory Commission (CSRC) has investigated and tried Evergrande Real Estate Group Co., Ltd. (hereinafter referred to as Evergrande Real Estate) for fraudulent issuance of bonds, illegal information disclosure and other behaviors, and found that there were false records in the 2019 and 2020 annual reports disclosed by Evergrande Real Estate; Evergrande Real Estate's public issuance of corporate bonds was fraudulently issued. Xia Haijun was the vice chairman of the board of directors and president of China Evergrande Group at the time, and the China Securities Regulatory Commission decided to give Xia Haijun a warning and impose a fine of 5 million yuan on Evergrande Real Estate for disclosing false records in its 2019 and 2020 annual reports; In response to the fraudulent issuance of corporate bonds by Evergrande Real Estate, Xia Haijun was fined 10 million yuan. In view of the fact that Xia Haijun organized and arranged the preparation of false financial reports, the methods were particularly vile and the circumstances were particularly serious, Xia Haijun was banned from the securities market for life.
Image source: SFC website
Xia Haijun organized the preparation of false financial reports, and the CSRC found that the 2019 and 2020 annual reports disclosed by Evergrande Real Estate contained false records. Evergrande Real Estate implemented financial fraud by recognizing income in advance, and inflated revenue of 213.989 billion yuan in 2019, accounting for 50.14% of the current operating income, corresponding to inflated costs of 173.267 billion yuan, and inflated profits of 40.722 billion yuan, accounting for 63.31% of the total profit of the current period; In 2020, the inflated revenue was 350.157 billion yuan, accounting for 78.54% of the current operating income, corresponding to the inflated cost of 298.868 billion yuan, and the inflated profit was 51.289 billion yuan, accounting for 86.88% of the total profit of the current period. Evergrande Real Estate's public issuance of corporate bonds was fraudulently issued. Evergrande Real Estate issued 20 Evergrande 02 bonds on May 26, 2020, with an issuance scale of 4 billion yuan; On June 5, 2020, 20 Evergrande 03 bonds were issued, with an issuance scale of 2.5 billion yuan; On September 23, 2020, 20 Evergrande 04 bonds were issued, with an issuance scale of 4 billion yuan; On October 19, 2020, 20 Evergrande 05 bonds were issued, with an issuance scale of 2.1 billion yuan; On April 27, 2021, 21 Evergrande 01 bonds were issued, with an issuance scale of 8.2 billion yuan. The issuance documents announced by Evergrande Real Estate in the process of issuing the above-mentioned bonds cited the relevant data of the 2019 and 2020 annual reports with false records, respectively, and there was a fraudulent issuance. The China Securities Regulatory Commission believes that the 2019 and 2020 annual reports disclosed by Evergrande Real Estate have false records, which violates Article 78 of the Securities Law, which stipulates that "the information disclosed by the information disclosure obligor shall be true, accurate, complete, concise, clear, and easy to understand, and there shall be no false records, misleading statements or material omissions", which constitutes the conduct described in the second paragraph of Article 197 of the Securities Law. Xia Haijun, then vice chairman of the board of directors and president of China Evergrande Group, actually managed the daily operation of Evergrande Real Estate, organized and arranged the preparation of false financial reports, and the means were particularly bad and the circumstances were particularly serious, and he was the person in charge who was directly responsible for the false records in the 2019 and 2020 annual reports. Evergrande Real Estate's fraudulent issuance of corporate bonds in the public violates the provisions of Paragraph 1 of Article 19 of the Securities Law, which stipulates that "the application documents submitted by the issuer for securities issuance shall fully disclose the information necessary for investors to make value judgments and investment decisions, and the content shall be true, accurate and complete", which constitutes the conduct mentioned in the first paragraph of Article 181 of the Securities Law. Xia Haijun, then vice chairman of the board of directors and president of China Evergrande Group, actually managed the daily operation of Evergrande Real Estate as a whole, organized and arranged the preparation of false financial reports, and was the person in charge who was directly responsible. According to the facts, nature, circumstances and degree of social harm of the parties' illegal acts, the CSRC decided: in response to Evergrande Real Estate's illegal acts of disclosing false records in the 2019 and 2020 annual reports, Xia Haijun will be warned and fined 5 million yuan in accordance with the provisions of Article 197, Paragraph 2 of the Securities Law; In view of the fraudulent issuance of corporate bonds issued by Evergrande Real Estate, Xia Haijun was fined 10 million yuan in accordance with the provisions of Article 181 of the Securities Law. In view of the fact that Xia Haijun organized and arranged the preparation of false financial reports, the means were particularly vile and the circumstances were particularly serious, in accordance with Article 221 of the Securities Law and the provisions of Article 3, Paragraph 1 and Article 5, Paragraph 3 of the 2015 Securities Market Prohibition Provisions (Decree No. 115 of the CSRC), Xia Haijun was banned from the securities market for life. From the date of the announcement of the decision by the CSRC, during the prohibition period, in addition to continuing to engage in securities business in the original institution or serving as a director, supervisor or senior management of the original listed company or unlisted public company, it is also prohibited to engage in securities business in any other institution or hold the position of director, supervisor or senior management of other listed companies or unlisted public companies.
👇 Click here to follow Jiangsu news
For detailed reports, please pay attention to Jiangsu News Channel [News Clue Prize Collection 🎁] Hotline: 025-83195110 Mailbox: [email protected]
Comprehensive|China Securities Journal Editor|Wei Wei
© Jiangsu news attention
↓