From Yahoo:

China Evergrande Group, a troubled property developer, has been fined 4.2 billion yuan ($333.4 million) by Beijing’s stock watchdog for alleged revenue falsification and other violations, leading to the chairman, Hui Ka Yan, being fined 47 million yuan ($6.5 million) and banned from China’s markets for life.

Regulators are cracking down on Chinese companies to rein in excessive borrowing, which has led to the collapse of dozens of firms since 2020. China Evergrande, the world’s most indebted property developer with over $300 billion in debts, is one of the casualties of this regulatory pressure on the financial sector.

Chinese markets have been struggling in the past year, with the Shanghai Composite index down 5.8% and Hong Kong’s Hang Seng falling 15.3%. The fallout from the property crisis has also impacted China’s shadow banking industry, with authorities detaining suspects related to asset management company Zhongzhi Enterprise Group.

The government is supporting the real estate industry to mitigate the damage caused by the property crisis. However, regulators found that Evergrande had overstated its revenue in 2019 by 214 billion yuan ($30 billion) and in 2020 by nearly 80%, raising concerns about the company’s financial practices and the integrity of its bonds.

Amidst the crackdown on market misbehavior and excessive borrowing, Chinese authorities are working to stabilize the financial sector and reassure investors. However, the ongoing turmoil in the property market and related industries has highlighted the risks associated with China’s high debt levels and regulatory scrutiny.



Read more at Yahoo: China’s stock watchdog fines property developer Evergrande, slaps lifetime ban on its chairman