Financial Wire

China Evergrande Founder Pleads Guilty to Fraud in Shenzhen Trial

-- The founder of China Evergrande (HKG:3333), Xu Jiayin, pleaded guilty to eight charges, including misuse of funds, fundraising fraud, and illegally taking public deposits, Xinhua News Agency reported Tuesday, citing The Shenzhen Intermediate People's Court.

Prosecutors also accused Xu of illegally granting loans. They charged China Evergrande Group and its unit, Evergrande Real Estate Group, with offenses including fraudulent issuance of securities.

In 2024, China's securities regulator fined Xu $6.6 million and barred him from the securities market for life after finding Evergrande's flagship unit had inflated earnings and committed securities fraud.

Creditors have lodged claims totaling about HK$350 billion, while liquidators have taken control of more than 100 subsidiaries and reported asset sales of about HK$2 billion since early 2024.

The company's debt troubles surfaced in December 2021 when it first defaulted on a US dollar bond.

In 2024, a Hong Kong court ordered Evergrande's liquidation, with the company later delisted, ending one of China's most high-profile property collapses.

Related Articles

Asia

Market Chatter: Hybe Shares Slip 3% as Police Seek to Arrest Founder over 2020 IPO Probe

Shares of Hybe (KRX:352820) fell nearly 3% to 2,48,000 won in Tuesday morning trade after the Seoul Metropolitan Police Agency sought to arrest the entertainment giant's founder Bang Si-hyuk on charges of misleading early investors before the company's initial public offering in 2020.Bang has also been accused of concealing profit-sharing arrangements tied to a private equity fund, Bloomberg reported Tuesday.Authorities suspect Bang made about 190 billion won in illicit gains. Bang denies any wrongdoing, according to the report.The probe, referred to by the Financial Services Commission last year, has raised concerns related to governance, it said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$KRX:352820
Asia

Eswin Materials Tech's 2025 Loss Widens; Shares Down 4%

Xi'an Eswin Materials Technology's (SHA:688783) net loss attributable to shareholders in 2025 slightly widened year on year to 738.2 million yuan, or 0.21 yuan per share, according to the company's annual report published Tuesday on the Shanghai bourse.The attributable loss a year earlier was 737.6 million yuan, while earnings per share were unchanged from 0.21 yuan a year earlier.Operating revenue climbed 25% to 2.65 billion yuan from 2.12 billion yuan in the previous year.The Chinese semiconductor company's shares dropped 4% during the morning trade.

$SHA:688783
Asia

ISOTeam Secures Contract Worth SG$30 Million; Shares Up 4%

ISOTeam (SGX:5WF) secured SG$30 million worth of contracts, according to a Monday filing with the Singapore Exchange.Shares of the facilities maintenance company were up nearly 4% in Tuesday trading.The contracts include a SG$8.3 million coating and painting projects contract, addition and alteration projects worth SG$6.8 million, repair and redecoration contracts worth SG$5.1 million, electrical work projects worth SG$4.8 million and landscaping projects worth SG$1.4 million.Following the award, the company's current order book stands at around SG$186.5 million.

$SGX:5WF