EconomyChinese real estate giant Evergrande fires its top executives

Chinese real estate giant Evergrande fires its top executives

(BEIJING) – The real estate giant Evergrande, which carries a huge debt and is the symbol of the crisis in the sector in China, forced the departure of its chief executive and chief financial officer after an internal investigation.

These exits come at a time when the company, which is in desperate need of liquidity, is fighting for its survival and trying to close a restructuring agreement on its debt, estimated at some 300,000 million dollars.

Evergrande is investigating why banks unexpectedly seized 13.4 billion yuan ($2 billion) in bank deposits from its real estate services unit, Evergrande Property Services.

The group launched an investigation with the help of lawyers and accountants to clarify the facts.

According to the statement released on Friday by Evergrande, the money was seized by financial institutions because it actually served as a "mortgage guarantee" so that a "third party" could obtain a bank loan.

The funds obtained thanks to the loan were "diverted to the group through third parties and were used for general operations" of Evergrande, according to the company.

"In view of the context, the board of directors decided to demand the resignation" of the leaders involved, including the CEO of China Evergrande Group, Xia Haijun, as well as the financial director, Pan Darong, the company added in a published note. on the website of the Hong Kong Stock Exchange.

The one who until now was the executive director of the group, Siu Shawn, will become the new CEO.

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