Cash out before debt crisis?Evergrande Xia Haijun may be placed under investigation
Xia Haijun, president of Evergrande, disappeared from the public eye for a long time after the liquidity crisis broke out.Especially since the second half of 2021, Xu jiayin has frequently voiced his voice at many public meetings organized by Evergrande, while Xia Haijun has rarely appeared or voiced his voice.But in the Hong Kong stock Exchange recently in a paper announcement has appeared xia Haijun figure.According to the public information disclosed by the Hong Kong Stock Exchange on the evening of February 10, Xia Haijun, president of Evergrande Group, sold the three evergrande US dollar bonds he held in 14 times from July 27 to August 17, 2021, and made a total cash of about 56.688 million US dollars (about 360 million yuan) by selling these us dollar bonds.It is the normal rights and interests of investors in the secondary market to reduce their holdings of trading assets. However, as Chairman Jianggao of Evergrande, Xia Haijunqi’s reduction node inevitably makes market investors doubt.Xia haijun’s selling time interval is between July 27, 2021 and August 17, 2021, while the data of selling published by The Hong Kong Stock Exchange is half a year later, February 10, 2022.Under the SECURITIES and Futures Ordinance, directors of a listed corporation who hold, cease to hold, sell or transfer the bonds of the corporation and its affiliates are required to make a declaration within 3 working days after they become aware of the transaction;In the event of the first disclosure of a bond holding, directors shall make such a declaration within 10 working days after the transaction or within 10 working days after they become aware of the transaction.Another point to note is that in 2021 on September 8, Evergrande wealth suddenly stop to honour its wealth management products and become a bomb, then concentrated to honour, rating, proposed debt restructuring, assets by judicial freeze and a series of crisis, making Evergrande various trading securities in the secondary market to fall.China Evergrande (0333.HK), for example, fell from HK $4.36 per share in September to HK $1.71 per share on February 14, a decline of 60.77%.Generally speaking, the investment trend of listed companies and their actual controllers or senior managers is a vane of the capital market, especially when reducing their holdings of their own companies’ stocks, the market will be highly concerned.Xia Haijun cashed out in large quantities before the Crisis of Evergrande on September 8, 2021, and only sold at about 30% to 50% discount of face value, indicating that he had anticipated the crisis of Evergrande in advance.In fact, similar “advance” divestment operations are not uncommon in the capital market. In recent years, many shareholders of listed companies in the A-share market were punished for reducing their holdings before the time of public opinion.Securities Daily once reported a set of data, since 2021 alone, more than 40 companies have been warned by the regulatory authorities for illegal shareholder reduction.The specific situation generally includes: breach of commitment, failure to disclose in advance, failure to disclose in accordance with standards and continued reduction of holdings.Relevant regulatory regulations also provide a basis for taking substantial economic penalties for illegal reduction of holdings.In the case of an illegal underweight, according to the “securities law” article one hundred and eighty-six, points out that the listed company holding more than 5% of the shareholders, actual controllers, dong higher transfer of shares is not in conformity with the laws, administrative regulations and prescribed by the securities supervision and administration institution, they shall be ordered to correct, give warning, confiscate the illegal income, and a fine of more than buying and selling securities equivalent.However, if the behavior involves concepts such as “insider information trading” and “insider information insiders”, it will be registered for investigation by the regulatory authorities, and the behavior is serious and may be suspected of a crime.Letter with practitioners, said dong prison high increase or decrease of listed companies will directly affect transactional asset prices, a degree will increase or decrease to a certain extent that dong high status for enterprise attitude, if the increase or decrease the situation is not timely disclosure, then clearly for medium and small investors have a poor information disadvantage is not fair.As the executive director of Evergrande, the senior executive of Evergrande should report the sale of Evergrande’s US dollar bonds on time. The failure to report for half a year is not in accordance with the regulations, and there is a possibility of trading with inside information.