China Evergrande’s Shenzhen-listed unit probed by securities regulator for alleged breach of information disclosure rules
- Hengda Real Estate Group is being investigated by China’s securities regulator in the latest blow for its embattled parent
- It comes just months after the home builder was reprimanded by the two major mainland bourses for missing a deadline for publishing its annual results
![‘The investigation could further hurt investors and creditors’ confidence in [Evergrande],’ says fund manager. Photo: Reuters](https://cdn.i-scmp.com/sites/default/files/styles/1200x800/public/d8/images/canvas/2023/08/17/8c647f10-e08b-4fa5-82c4-d49fb69c5bf3_334cd2bd.jpg?itok=s9VmAJ-K&v=1692251222)
The developer said in a filing to the Shanghai Stock Exchange on Wednesday evening that the China Securities Regulatory Commission (CSRC) had sent a letter notifying it of the probe earlier the same day.
“The company is actively assisting the regulator in conducting the probe,” Hengda said in the filing.
Hengda is an indirectly owned unit of Guangzhou-based Evergrande Group, the world’s most indebted developer saddled with total liabilities of 2.44 trillion yuan (US$335.3 billion).
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“Evergrande and its onshore unit found themselves in hot water after a 2021 default which triggered a chain of bad reactions,” said Zhou Ling, a fund manager with Shanghai Shiva Investment. “The investigation could further hurt investors and creditors’ confidence in the developer.”