On May 13, the Shenzhen Stock Exchange published an announcement on the delivery of the "Prior Notice of Disciplinary Action", which was led by Xia Haijun, the former director of Evergrande Group.
Screenshot source: Shenzhen Stock Exchange official website
01
Xia Haijun, the former director of Evergrande, was publicly reprimanded
According to the announcement, Xia Haijun was suspected of violating the relevant provisions of Articles 1.5 and 1.6 of the Shenzhen Stock Exchange's "Corporate Bond Listing Rules (2018 Revision)" during his tenure as a director of China Evergrande Group, the controlling shareholder of Evergrande Real Estate Group Co., Ltd. The Shenzhen Stock Exchange intends to impose a public determination that he is not suitable to serve as a director, supervisor or senior manager of the bond issuer for life, and a public reprimand.
The announcement mentioned that since Xia Haijun could not be contacted, the Shenzhen Stock Exchange is now informing him of the relevant matters related to the proposed disciplinary punishment in the form of an announcement. Please collect the "Advance Notice of Disciplinary Sanction" from the firm within 10 days from the date of the announcement, and if they fail to receive it within the time limit, the above time limit will be deemed to have been served, and the firm will make a formal punishment decision in accordance with the relevant regulations.
Xia Haijun was previously known as "Xu Jiayin's most trusted man". As Xu Jiayin's right-hand man, he has sat firmly in the position of Evergrande's "No. 2 person" for many years, and Xu Jiayin has repeatedly let him deal with the media at the performance meeting alone. In the entire real estate industry, Xia Haijun is also one of the professional managers with the longest working experience.
Xia Haijun also has a ceiling-level salary. In 2017, in the "Salary List of CEOs of Hong Kong-listed Chinese Stocks" released by Forbes, Xia Haijun topped the list with 270 million yuan. According to Evergrande's annual report, in 2021 and 2020, Xia Haijun's salary in Evergrande Group will still be as high as 202 million yuan and 204 million yuan.
However, on July 22, 2022, China Evergrande issued an announcement announcing the resignation of Xia Haijun as the company's executive director and chief executive officer.
Xia Haijun. Image source: Evergrande Group's WeChat public account
02
Previously, a fine of 15 million yuan was imposed
The last time Xia Haijun's name appeared in public was in March this year.
On March 18, Evergrande Real Estate announced that Evergrande Real Estate and related responsible persons recently received a prior notice of administrative punishment and market ban from the China Securities Regulatory Commission (Penalty Zi [2024] No. 36) (hereinafter referred to as the "Prior Notice").
This "Prior Notice" contains a lot of content, including Evergrande Real Estate's disclosure of false records in its 2019 and 2020 annual reports, Evergrande Real Estate's suspected fraudulent issuance of corporate bonds in public issuance, and Evergrande Real Estate's failure to submit relevant reports or fulfill information disclosure obligations in accordance with regulations. Based on the above three items, the SFC issued a warning to Xu Jiayin and imposed a fine of 47 million yuan; Xia Haijun was given a warning and fined 15 million yuan.
At the same time, the "Prior Notice" mentioned that Xu Jiayin made decisions and organized the implementation of financial fraud, the means were particularly bad, and the circumstances were particularly serious, and Xia Haijun organized and arranged the preparation of false financial reports, the means were particularly bad, and the circumstances were particularly serious, according to Article 221 of the Securities Law and the provisions of Article 3, Paragraph 1 and Article 5, Paragraph 3 of the 2015 "Securities Market Prohibition Regulations" (Decree No. 115 of the CSRC), the CSRC intends to decide to impose a lifetime ban on Xu Jiayin and Xia Haijun from the securities market.
On May 13, the Shenzhen Stock Exchange published an announcement on the delivery of the "Prior Notice of Disciplinary Action", which was led by Xia Haijun, the former director of Evergrande Group.
Screenshot source: Shenzhen Stock Exchange official website
01
Xia Haijun, the former director of Evergrande, was publicly reprimanded
According to the announcement, Xia Haijun was suspected of violating the relevant provisions of Articles 1.5 and 1.6 of the Shenzhen Stock Exchange's "Corporate Bond Listing Rules (2018 Revision)" during his tenure as a director of China Evergrande Group, the controlling shareholder of Evergrande Real Estate Group Co., Ltd. The Shenzhen Stock Exchange intends to impose a public determination that he is not suitable to serve as a director, supervisor or senior manager of the bond issuer for life, and a public reprimand.
The announcement mentioned that since Xia Haijun could not be contacted, the Shenzhen Stock Exchange is now informing him of the relevant matters related to the proposed disciplinary punishment in the form of an announcement. Please collect the "Advance Notice of Disciplinary Sanction" from the firm within 10 days from the date of the announcement, and if they fail to receive it within the time limit, the above time limit will be deemed to have been served, and the firm will make a formal punishment decision in accordance with the relevant regulations.
Xia Haijun was previously known as "Xu Jiayin's most trusted man". As Xu Jiayin's right-hand man, he has sat firmly in the position of Evergrande's "No. 2 person" for many years, and Xu Jiayin has repeatedly let him deal with the media at the performance meeting alone. In the entire real estate industry, Xia Haijun is also one of the professional managers with the longest working experience.
Xia Haijun also has a ceiling-level salary. In 2017, in the "Salary List of CEOs of Hong Kong-listed Chinese Stocks" released by Forbes, Xia Haijun topped the list with 270 million yuan. According to Evergrande's annual report, in 2021 and 2020, Xia Haijun's salary in Evergrande Group will still be as high as 202 million yuan and 204 million yuan.
However, on July 22, 2022, China Evergrande issued an announcement announcing the resignation of Xia Haijun as the company's executive director and chief executive officer.
Xia Haijun. Image source: Evergrande Group's WeChat public account
02
Previously, a fine of 15 million yuan was imposed
The last time Xia Haijun's name appeared in public was in March this year.
On March 18, Evergrande Real Estate announced that Evergrande Real Estate and related responsible persons recently received a prior notice of administrative punishment and market ban from the China Securities Regulatory Commission (Penalty Zi [2024] No. 36) (hereinafter referred to as the "Prior Notice").
This "Prior Notice" contains a lot of content, including Evergrande Real Estate's disclosure of false records in its 2019 and 2020 annual reports, Evergrande Real Estate's suspected fraudulent issuance of corporate bonds in public issuance, and Evergrande Real Estate's failure to submit relevant reports or fulfill information disclosure obligations in accordance with regulations. Based on the above three items, the SFC issued a warning to Xu Jiayin and imposed a fine of 47 million yuan; Xia Haijun was given a warning and fined 15 million yuan.
At the same time, the "Prior Notice" mentioned that Xu Jiayin made decisions and organized the implementation of financial fraud, the means were particularly bad, and the circumstances were particularly serious, and Xia Haijun organized and arranged the preparation of false financial reports, the means were particularly bad, and the circumstances were particularly serious, according to Article 221 of the Securities Law and the provisions of Article 3, Paragraph 1 and Article 5, Paragraph 3 of the 2015 "Securities Market Prohibition Regulations" (Decree No. 115 of the CSRC), the CSRC intends to decide to impose a lifetime ban on Xu Jiayin and Xia Haijun from the securities market.