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Evergrande’s CEO sells off bonds before company’s crisis

According to information from the Hong Kong Stock Exchange, Xia Haijun, vice-chairman and chief executive of China Evergrande Group, sold off $128 million worth of bonds before the company fell into a debt crisis last year.

According to his new filings late on Wednesday, Feb.9, Xia Haijun sold three tranches of Evergrande bonds between July and August last year, namely $28 million of notes due in 2025 and $50 million of notes due 2023, and $50 million of notes due in 2022.

During the same period, Xia Haijun also reduced his holdings in Evergrande, including selling 3 million shares of Evergrande Motor and 10 million shares of Evergrande Property on the market at an average price of $1.82 per share on Aug. 11 last year.

Evergrande has been in financial problems since the middle of last year due to cash constraints and Beijing’s “three red lines” policy. The Central Bank of China requested to resolve the debt risk, but it entered a debt crisis last September.

Evergrande, formerly China’s largest property developer by sales, is collapsing under a mountain of debts totaling $310 billion.

The Financial Times on Jan. 26 reported that Oaktree Capital, an asset management firm in The U.S., had appointed a receiver to a Yuen Long plot. It was used as collateral for a $520 million loan in January 2021.

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