| China Evergrande Group’s alleged $US78 billion revenue overstatement escalates the legal peril of founder Hui Ka Yan, who now stands at the centre of one of the biggest financial fraud cases in history.
“The CSRC fines may serve as a warning to owners of other defaulted developers that failing to collaborate with authorities over debt restructuring could result in severe consequences,” said Zerlina Zeng, senior credit analyst at Creditsights.that has eroded economic growth and household wealth, as home sales and prices tumble.The allegations mark the latest blow for Mr Hui, once among Asia’s richest tycoons, who oversaw a sprawling empire that spanned real estate to electric vehicles.
As the supervisor in charge, Mr Hui used particularly “egregious” means, the regulator said. Hengda was also accused of fraudulently issuing a combined 20.8 billion yuan in bonds using these figures in marketing.Hengda’s auditor in 2019 and 2020 was PwC’s Zhong Tian, a mainland entity affiliated with PwC’s network. PwC resigned as Evergrande’s auditor in January 2023 due to audit disagreements.