The former head of Chinese real estate giant Evergrande has admitted in court to several serious misconduct related to the management of the company, which is already at the heart of a major financial crisis. During a public hearing, he acknowledged acts of fraud and financial irregularities, marking a key step in one of the country's biggest recent economic scandals.
According to judicial authorities, the charges include illegal financing practices, the fraudulent issuance of securities, and accounting manipulations. The executive, once a leading figure in China's real estate boom, expressed remorse before the judges, while the court's final decision is expected in the coming days.
A symbol of the Chinese real estate crisis
Evergrande, once one of the country's most powerful developers, collapsed after a liquidity crisis that began in 2021, amid a colossal debt estimated at over $300 billion. This fall has deeply shaken the Chinese real estate sector, already weakened by an economic slowdown and financing restrictions imposed by Beijing.
Since then, revelations of falsified accounts and financial irregularities have intensified the legal and political pressure on the group. The founder's admission of wrongdoing comes amid a crackdown by authorities seeking to restore investor confidence and contain the systemic risks associated with this major crisis.
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