China to bar Evergrande chair from securities market for life

Chinese regulators plan to ban Xu Jiayin, chairman of property developer Evergrande Group, from entering the securities market for life, the company announced on Monday.

The company's flagship real estate subsidiary said it has received advance notice of administrative penalties and market bans issued by the China Securities Regulatory Commission (CSRC).

The CSRC accused Xu of "making decisions on and organizing financial fraud," Evergrande Real Estate Group said in filings to the Shanghai and Shenzhen stock exchanges.

The CSRC will issue Xu a warning and a fine of 47 million yuan (US$6.63 million).

Evergrande Real Estate Group will also receive a warning and a fine of 4.18 billion yuan for the issuance of false information in its 2019 and 2020 annual reports, for suspected fraud in its issuance of corporate bonds, and for its failure to disclose required information in a timely manner.