2/10, 3:49 PM (Source: TeleTrader)
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Evergrande CEO sold bonds ahead of firm profit warning - report

The China Evergrande Group Chief Executive Officer (CEO) Xia Haijun sold his dollar bonds with the company in the value of $128 million just a few weeks before it issued a profit warning in the summer of 2021, the Wall Street Journal (WSJ) reported on Thursday, citing the filing the firm submitted to the Hong Kong Stock Exchange (SEHK).

In the past few years, Xia and Evergrande Chairman Hui Ka Yan bought a significant amount of dollar bonds from the company to allegedly support its projects and finances. According to the documents cited by the WSJ, Xia sold all of his in the form of three-dollar bonds between July 27 and August 15, 2021. The company did not disclose why Xia made such a move nor why the revelation about the sale was made only now.

Back in August, Evergrande issued a profit warning through the document it sent to the SEHK, saying that its net profit in the first six months of the year is expected to be between 29% and 39% lower than in the same period in 2020. The announcement signalized the financial crisis the real estate giant has since been facing, which, when it was revealed, largely affected stock markets around the world.

Baha Breaking News (BBN) / JR