Evergrande admits managerial misconduct

Released on 18. 09. 2021

  • Debts of the equivalent of more than 300 Billions of US dollars weigh on the Chinese real estate giant Evergrande. Photo: Soeren Stache

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Evergrande, a Chinese real estate giant, is in crisis. The group is heavily indebted. Now the misconduct is made public by several managers.

Beijing (dpa) – The ailing Chinese real estate giant Evergrande has admitted the misconduct of several high-ranking managers.

Six executives therefore have several investment products from Company illegally redeemed in advance. Evergrande said on Saturday that the matter was being taken very seriously. The group demands a repayment of the redeemed funds from the managers and will impose “severe penalties”.

Normally, the company’s own investments may only be paid out after a certain holding time . The managers reportedly cashed the investments ahead of the planned payment plan.

The misconduct of the executives takes place in the midst of an existence-threatening crisis of the heavily indebted real estate giant Headquarters in Shenzhen. Evergrande’s debt is the equivalent of more than 18 billion US dollars. Since the beginning of the year, the Group’s share price has fallen by three quarters. Most recently, several rating agencies had further downgraded Evergrande’s creditworthiness and warned against payment defaults.

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