Debt-laden Chinese developer Fantasia and its chairman rebuked by Hong Kong stock exchange for breaching agreement with spin-off unit

Name: Angry protest at headquarters of China Evergrande as property giant faces liquidity crunch
Uploaded: 2022-02-28T12:22:59.000Z
Duration: 2 min 28 s
Description: Angry protest at headquarters of China Evergrande as property giant faces liquidity crunch

The bourse publicly criticised Fantasia and its chairman Pan Jun, who was ordered to attend 17 hours of corporate governance training

Fantasia, alongside the likes of China Evergrande Group and Modern Land, was among the major developers to default on their offshore debt

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The Fantasia Holdings Group headquarters in Shenzhen, . Photo: Bloomberg

Enoch Yiu

Published: 8:22pm, 28 Feb 2022Updated: 8:24pm, 28 Feb 2022

Debt-stricken Chinese developer Fantasia Holdings Group and its chairman Pan Jun have been heavily criticised by the Hong Kong stock exchange for breaching an agreement to avoid direct competition with a spin-off company.

The exchange publicly rebuked Fantasia and Pan, and ordered the chairman to attend 17 hours of training on corporate governance and other aspects of listing rules.

The bourse also meted out criticism to former Fantasia executive director Lam Kam-tong, the spin-off unit Colour Life Services and its former executive directors, Zhou Qin-wei and Tang Xue-bin. The trio will also need to attend training to qualify as directors of listed companies in Hong Kong in the future.

Fantasia, a Shenzhen-based developer, was listed in Hong Kong in November 2009 before it spun off Colour Life in June 2014. At the time, both firms planned to continue to engage in property management.

They entered into a non-competition agreement to clearly delineate their business focuses, in accordance with a listing rules requirement. Under the deed, Fantasia was only allowed to provide management services for commercial buildings while Colour Life would stick to residential projects.

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Angry protest at headquarters of China Evergrande as property giant faces liquidity crunch

However, the exchange found that the parent company had been involved in 30 residential property contracts while Colour Life carried out work in several commercial buildings.