Delivery time2023-10-26 23:22
WSJ “Following the arrest of Hengda Chairman, the former president of a large bank is also being investigated”
Xu Jain, chairman of Chinese real estate development company Hengda.
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(New York = Yonhap News) Correspondent Lee Ji-heon = As China’s real estate market plunge threatens the recovery of the Chinese economy, the U.S. Wall Street Journal (WSJ) reported on the 26th (local time) that the Chinese government is looking for a ‘scapegoat’ to take responsibility for it. The report cited an official familiar with the matter.
According to reports, Chinese authorities caught Xu Jain, chairman of Evergrande Group, on criminal charges and arrested him on the 28th of last month, and are recently expanding the scope of the investigation to major figures in the banking industry and financial companies.
It is reported that the former president of Bank of China, one of China’s largest banks, is among the subjects of the investigation.
It is interpreted that the authorities’ large-scale investigation, which was directed at the real estate industry, is now expanding to the financial sector that lent money to these companies.
It is reported that the investigative authorities are concentrating their investigation power to determine whether Hengda executives, including Chairman Xu Jain, engaged in illegal activities to raise funds, such as providing kickbacks to financial company executives in exchange for loans.
After Chairman Xu Jain’s arrest, a number of accusatory contents were posted on social media, including that Heng Da operated his own dance troupe to entertain bank executives and other VIPs.
WSJ analyzed that China’s expansion of the investigation was due to Chinese President Xi Jinping’s order at an official meeting last month to ensure that there is no negligence in regulating the real estate industry and to emphasize that anti-corruption activities must be identified and punished until the end.
Hengda, which was enjoying a boom by taking advantage of China’s real estate development boom, fell into financial difficulties and defaulted in December 2021 after the authorities implemented large-scale regulations to curb overheated speculation in 2020.
Then, last August, the company applied for bankruptcy protection under Article 15 (Chapter 15) of the Bankruptcy Protection Act at the Manhattan Bankruptcy Court in New York, USA.
Hong Kong’s South China Morning Post (SCMP) previously cited analysts as saying, “Xu Jain’s downfall signals the Chinese authorities’ deep-rooted concerns about the impact of the super-rich on finance and social stability.” “We did not hesitate to take action against Xu Jain, regardless of the potential blow to trust,” he said.
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2023/10/26 23:22 Sent
2023-10-26 14:22:42
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