Evergrande Accused of Falsifying Revenue by $78 Billion

00:00

00:00/00:00

Listen to this article 1x

Hui Ka Yan, the founder and former chairman of Evergrande, allegedly instructed other personnel to “falsely inflate” Hengda Real Estate’s annual results. Photo: Bloomberg

(Bloomberg) — China Evergrande Group, the defaulted developer at the heart of China’s real estate crisis, falsely inflated revenue by more than $78 billion in the two years leading up to its failure, according to the nation’s top securities regulator.

Evergrande’s main onshore unit Hengda Real Estate Group boosted its 2019 income by about 214 billion yuan ($29.7 billion) by recognizing sales in advance, and another 350 billion yuan in the 2020 annual results, the developer said in a filing Monday, citing a notice from the China Securities Regulatory Commission (CSRC).