CSRC: Takes lifetime ban on former Evergrande (03333) CEO Xia Haijun from securities market and fines him 15 million yuan.

The China Securities Regulatory Commission (CSRC) issued an administrative penalty decision against Xia Haijun, the former Vice Chairman and President of Evergrande Group (03333), for the company's falsification of its annual reports in 2019 and 2020. Xia Haijun was given a warning and fined 5 million RMB for the false disclosures in the annual reports. In addition, he was fined 10 million RMB for the fraudulent issuance of corporate bonds by Evergrande. Due to Xia Haijun's organization and arrangement of false financial reports, which had particularly malicious means and serious consequences, he has been banned from the securities market for life. The CSRC believes that Evergrande's false disclosure in its annual reports of 2019 and 2020 violated Article 78 of the Securities Law, which stipulates that information disclosed by obligated individuals should be true, accurate, complete, clear, and understandable, without false records, misleading statements, or major omissions, constituting acts as described in Article 197(2) of the Securities Law. As the former Vice Chairman and President of Evergrande Group, Xia Haijun was directly responsible for the false disclosures in the annual reports of 2019 and 2020. The fraudulent issuance of corporate bonds by Evergrande violated Article 19(1) of the Securities Law, which mandates that issuers submit securities issuance application documents that fully disclose information necessary for investors to make value judgments and investment decisions, and the content should be true, accurate, and complete, constituting acts as described in Article 181(1) of the Securities Law. Xia Haijun, as the former Vice Chairman and President of Evergrande Group, was directly responsible for arranging the preparation of false financial reports. Based on the facts, nature, circumstances, and social harm of the illegal acts committed by the parties involved, the CSRC decided: 1. Regarding Evergrande's false disclosures in its annual reports of 2019 and 2020, Xia Haijun was given a warning and fined 5 million RMB in accordance with Article 197(2) of the Securities Law. 2. Regarding the fraudulent issuance of corporate bonds by Evergrande, Xia Haijun was fined 10 million RMB in accordance with Article 181 of the Securities Law. 3. Due to Xia Haijun's organization and arrangement of false financial reports, with particularly malicious means and serious consequences, in accordance with Article 221 of the Securities Law and the CSRC's 2015 Provisions on Market Entry Bans (CSRC Order No. 115), he is subject to a lifetime ban from the securities market. During the ban period, Xia Haijun is prohibited from engaging in securities business or holding positions as a director, supervisor, or senior executive in the original institution or any other organization.