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State-Linked Property Deals Tied to Evergrande Face Scrutiny

Published: May. 7, 2026 4:41 p.m. GMT+8

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Hu Donghai.

Chinese authorities are investigating a former chairman of state-owned Citic Group Corp.’s real estate business in a case that could involve projects later sold to China Evergrande Group, according to sources familiar with the matter.

The developments point to growing scrutiny of opaque ties between state-owned firms and private developers that helped fuel China’s debt-driven property boom, leaving behind heavy debts and stalled projects after the market downturn.

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Chinese authorities investigating Hu Donghai, 62, former Citic Land chairman.
Hu linked to Huasheng network; 2016 joint venture acquired Shenzhen projects sold to Evergrande in 2017.
Deals: Longhua project for 16.3B yuan ($2.4B); another for 10.7B yuan, financed by Citic Bank fund.

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Who’s Who

Citic Group Corp.: Chinese authorities are investigating Hu Donghai, former chairman of state-owned Citic Group Corp.'s real estate unit Citic Land, over opaque ties with private developers. Projects via a 2016 joint venture with Huasheng network were sold to Evergrande in 2017, financed by a Citic Bank fund.

China Evergrande Group: China Evergrande Group bought Shenzhen urban redevelopment projects from a Huasheng-Citic Land JV around 2017. A Longhua district project transferred in May for 16.3B yuan ($2.4B), and another for 10.7B yuan, both financed by an Evergrande-Citic Bank fund. This ties into probes of ex-Citic Land chairman Hu Donghai.

Citic Land Co. Ltd.: Citic Land Co. Ltd., real estate arm of Citic Group Corp., faces scrutiny over opaque ties with private developers. Former chairman Hu Donghai, 62, was detained by authorities. In 2016, it formed a JV with Huasheng network for Shenzhen redevelopment projects, some sold to Evergrande in 2017 using Citic Bank financing. (58 words)

Citic Bank: Citic Bank jointly established an acquisition fund with Evergrande, providing 16.3 billion yuan ($2.4 billion) to finance a Shenzhen Longhua project transfer in May 2017, and financing for another Shenzhen project sold for 10.7 billion yuan that month.

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