The scandal surrounding China Evergrande Group continues to unfold as Xia Haijun, the former CEO of the company, sells his Hong Kong home at a significant loss. The 2,834 sq ft duplex flat was sold for HK$82 million, which is 49% lower than the original asking price of HK$160 million. Xia purchased the property in 2019 and sold it last month [4d2910c1].
Xia Haijun's departure from Evergrande came in 2022 after an internal investigation revealed his involvement in diverting loans worth US$2 billion. As Evergrande faced mounting debt troubles, Xia left mainland China in 2021 and took up residence in Hong Kong. The China Securities Regulatory Commission subsequently fined Evergrande Chairman Hui Ka Yan and banned him from the securities market for life. Xia's role in fraudulent bond issuance and illegal information disclosure was described as 'particularly vile' by the regulator. Xia has not been available for comment [4d2910c1].
The sale of Xia Haijun's Hong Kong home at a loss adds to the ongoing controversy surrounding Evergrande and its financial troubles. The company, once one of China's largest property developers, is now burdened with over $320 billion in debt, making it the most indebted real estate company in the world. Evergrande's ambitious ventures in various sectors, including electric vehicles and theme parks, were funded through debt. China's strict regulations on the property sector and the government's efforts to reduce reliance on it have further threatened Evergrande's stability. The company's collapse has had far-reaching effects, impacting various sectors and individuals, both in China and globally. Concerns about the global impact of the real estate crisis and the need for government intervention or stabilization of house prices have been raised [cdbfa8a5].
The sale of Xia Haijun's Hong Kong home highlights the personal financial repercussions faced by individuals involved in the Evergrande scandal. Xia's decision to sell the property at a significant loss may be seen as an attempt to mitigate the financial fallout from his involvement with Evergrande. The sale also raises questions about the state of the Hong Kong property market, as the property was sold for nearly half of its original purchase price. The impact of Evergrande's financial troubles on the broader Hong Kong property market remains to be seen [4d2910c1].