Embattled Chinese real estate developer Evergrande lopped off a few more executive heads on Friday, with CEO Xia Haijun and CFO Pan Darong both being forced to resign over mishandled deposits.
Evergrande had been investigating how 13.4 billion yuan ($1.99 billion) of its deposits were used as security for third parties to obtain bank loans, which some borrowers then failed to pay back. The pledge guarantees threatened to wipe out most of the cash holdings at its property-services unit.
Such misuse of corporate funds is a primary reason developers such as Evergrande have exhausted their funds even as they have housing projects to complete and suppliers to pay back.
As is usually the case when asset bubbles finally burst, corruption plays a key role.
No worries! More than one of the news aggregators I use to stay abreast of what's going on in the world (this Substack requires a LOT of reading on current events!) occasionally slips in as "breaking" news an article that is in fact weeks and sometimes months old. So I did first check to make sure that I hadn't missed one of their oopsies to have an oopsie of my own.
When I pull a quote for these one-article discussion thread posts, I look for the paragraph that seems to have the most important and relevant information to put the article in proper context, and I quote that as is. Sometimes the quote will contain links to other material as well--if it does I usually just leave the links in there.
At one point in my young life I was handling some pretty large sums of cash for individuals, some connected to government agencies. They trusted me with the cash because I had never messed it up, even being set up with what was apparently uncounted sums which was a test, I was later told.
What is it with these guys, do they really think the "cartel" won't catch up with them?
Those links are to Bloomberg articles from four months ago. Any updates?
The Bloomberg article in the archival link above is dated July 22--yesterday. I just double checked to make sure.
The resignations of the CEO and CFO is the update to the investigation. Essentially they got caught with their hand in the cookie jar.
Whoops! I looked at the two earlier articles and missed the link in your first line.
No worries! More than one of the news aggregators I use to stay abreast of what's going on in the world (this Substack requires a LOT of reading on current events!) occasionally slips in as "breaking" news an article that is in fact weeks and sometimes months old. So I did first check to make sure that I hadn't missed one of their oopsies to have an oopsie of my own.
When I pull a quote for these one-article discussion thread posts, I look for the paragraph that seems to have the most important and relevant information to put the article in proper context, and I quote that as is. Sometimes the quote will contain links to other material as well--if it does I usually just leave the links in there.
At one point in my young life I was handling some pretty large sums of cash for individuals, some connected to government agencies. They trusted me with the cash because I had never messed it up, even being set up with what was apparently uncounted sums which was a test, I was later told.
What is it with these guys, do they really think the "cartel" won't catch up with them?
If I were to guess, they probably have been "borrowing" such funds for years, and then putting them back before anyone noticed.
Until the one time when, for whatever reason, they couldn't put them back. Of course, by then it's too late and the damage is done.