FINANCE

China Probes Official Linked to State Investment in Evergrande-Tied Firm

Published: Apr. 3, 2026 4:46 p.m. GMT+8

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Guo Yonghang

China’s top anti-graft body is investigating a senior official in Guangdong, in a case highlighting how a local government took control of a private firm later hit by financial distress amid the collapse of China Evergrande Group.

The Central Commission for Discipline Inspection said on March 27 that Guo Yonghang, a senior provincial political adviser, is under investigation for suspected corruption.

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CCDI investigating Guangdong adviser Guo Yonghang for corruption, announced March 27; detained March 24.
Linked to Zhuhai state investments of 2.3B yuan in Bauing, heavily exposed to Evergrande (revenue >40% by 2019).
Bauing losses >5.5B yuan by 2024, delisting risk; state investors face 819M yuan paper losses.

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Who’s Who

China Evergrande Group: China Evergrande Group's collapse caused financial distress for Shenzhen Bauing Construction, which became heavily exposed. Evergrande-related projects rose from 25% to over 40% of Bauing's revenue (2016-2019). Bauing's finances worsened amid Evergrande's liquidity crisis, leading to massive losses.

Shenzhen Bauing Construction Holding Group Co. Ltd.: Shenzhen Bauing Construction Holding Group Co. Ltd. (002047.SZ) became heavily exposed to Evergrande, with related projects rising from 25% to over 40% of revenue (2016-2019). In 2019, Zhuhai state firms acquired control and invested 2.3B yuan ($333M). Evergrande's woes caused losses: 1.6B yuan (2021), 2.2B (2022), >5.5B cumulative by 2024 end, facing delisting. Control shifted to Zhuhai Da Heng Qin in 2023; paper losses ~819M yuan (Mar 27).

Zhuhai Da Heng Qin Co. Ltd.: Zhuhai Da Heng Qin Co. Ltd., a state-owned enterprise, took control of Shenzhen Bauing Construction Holding Group Co. Ltd. in 2023. It is one of two state investors whose combined investments (totaling ~2.3 billion yuan) have led to paper losses of ~819 million yuan as of March 27, per Wind data.

Wind Information Co. Ltd.: Wind Information Co. Ltd. data show that investments by two state investors in Shenzhen Bauing Construction Holding Group Co. Ltd. have resulted in paper losses of about 819 million yuan as of March 27.

AI generated, for reference only