China's securities regulator probes Evergrande Real Estate Group over suspected disclosure violations
Published: Aug 17, 2023 12:31 AM
Evergrande Group Photo: VCG

Evergrande Group Photo: VCG

China's top securities regulator has launched an investigation into the embattled Evergrande Real Estate Group over suspected violations of information disclosure rules, the company said in a filing on Wednesday.

The group said that it had received a notice from the China Securities Regulatory Commission (CSRC) saying that the CSRC had decided to launch the investigation.

"The company will actively cooperate with the investigation of the China Securities Regulatory Commission, and strictly perform its information disclosure obligations in accordance with relevant requirements," it said. 

The probe comes as the company continues to struggle with considerable financial woes. On Wednesday, China Evergrande Group decided to delay its meetings with the Hong Kong CEG class A and class C holders of debt, to provide them with more time to consider its fresh restructuring plan, according to Reuters. 

Evergrande's debt woes have also become a focal point for foreign media outlets' hype about risks and challenges in China's real estate market. In addition to Evergrande, financial problems at another Chinese real estate giant Country Garden have also drawn widespread attention. 

However, Chinese officials and analysts have said that while some Chinese real estate developers have encountered problems, the challenges are temporary and will not affect the overall stable development of the housing market in the long run or the country's overall economic development. 

Commenting on Country Garden, Fu Linghui, a spokesperson for the National Bureau of Statistics (NBS), said on Wednesday that problems faced by the firm are temporary and industry risks are expected to ease with the implementation of market adjustment mechanisms and housing policy adjustments.

Amid the downward trend in the real estate sector, many Chinese government departments and localities have issued various policy measures to boost home sales, including relaxed restrictions on home purchases.