Hengda Real Estate Group Limited’s financial fraud and fraudulent issuance of corporate bonds, the Shenzhen Stock Exchange announced on September 30th disciplinary actions against Hengda Real Estate and its relevant parties including Xu Jiayin.
According to the decision of the Shenzhen Stock Exchange on September 30th, Hengda Group received disciplinary actions which include: a 3-year ban on accepting submission of bond issuance listing or transfer application documents from Hengda Real Estate; publicly deeming Xu Jiayin, the former chairman and actual controller of Hengda Real Estate, as well as Xia Haijun, the former vice chairman and president of the board, unsuitable for serving as directors, supervisors, or senior management personnel of bond issuers for life; publicly deeming Pan Darong, the former chief financial officer, and Pan Hanling, the former vice president and general manager of the financial center, as unsuitable for serving as directors, supervisors, or senior management personnel of bond issuers for 10 years.
During the specified period, the individuals mentioned above are not allowed to continue holding positions as directors, supervisors, or senior management personnel of the original bond issuer, nor are they permitted to hold such positions in other bond issuers.
In January of this year, Hengda Group was forced into liquidation by the High Court of Hong Kong due to insolvency. In May, the China Securities Regulatory Commission notified that Hengda Real Estate was penalized for illegal activities such as inflating revenue in its annual report, with a fine of 4.175 billion RMB imposed on Hengda and a maximum fine of 47 million RMB on Xu Jiayin, along with a lifelong ban from entering the securities market.