Evergrande onshore unit says it’s being probed by China watchdog
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Evergrande's Hengda Real Estate Group is being investigated for suspected information disclosure violations.
PHOTO: REUTERS
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New York – The mainland China unit of giant developer China Evergrande Group said the country’s securities regulator has built a case against it relating to suspected information disclosure violations.
Hengda Real Estate Group said late on Wednesday that it received a notification earlier the same day from the China Securities Regulatory Commission (CSRC). The struggling real estate developer unveiled the news in a Shanghai Stock Exchange filing.
CSRC probes into alleged information disclosure irregularities are not rare. Among the 73 domestically listed Chinese companies under investigation as at July 18, more than 70 per cent were suspected of information disclosure violations, local media reported in July.
Targets have also included state-owned giants. China Shipbuilding Industry and Beijing Capital Development said last month that they were subject to CSRC investigation over suspicions they violated information disclosure rules.
A probe does not necessarily lead to penalties, according to law firm King & Wood Mallesons. But if that is the case, administrative punishments may include rectification, warning or fines.
Hengda will actively cooperate with the CSRC in its investigation and fulfil its disclosure obligations, the company said in the statement on Wednesday. BLOOMBERG
