Chinese real estate developer giant and the world's largest defaulting firm, Evergrande Group is facing its 2nd audit investigation in 9 months.
It is understood that the Hong Kong Financial Reporting Council is actively conducting investigations into Evergrande's accounts and auditing several transactions of the firm including its subsidiary, Evergrande Property Services Group Ltd.
The investigation by the watchdog is seen to increase pressure on firms struggling with China's real estate crisis.
For the record, the firm has been subjected to default status due to its failure to pay debts last December, causing concerns about the ability to repay and complete the project to the owner.
On those factors the auditor regulator has expanded the scope of its inspection for Evergrande's financial statements for 2020 and the first half of 2021, in addition to expanding the audit investigation.
The details of the investigation are to find out how 13.4 billion Yuan or $1.98 billion of his deposits were used as collateral for a 3rd party to get a bank loan and then failed to repay.
In addition, the previous investigation also triggered the departure of several senior executives namely Xia Haijun and Pan Darong a few weeks ago.
It is also not forgotten that founder Hui Ka Yan resigned as chairman of the real estate unit last year after being involved in the debt crisis.
