Six senior executives at Evergrande face “severe punishment”, the indebted Chinese property group has said.
The executives had secured early redemptions on investment products that the developer subsequently told retail investors it could not repay on time.
The admission comes ahead of a critical fortnight for Evergrande, which is struggling to repay investors, banks and bondholders, as well as complete flats for homebuyers who paid for their new properties in advance.
Hong Kong-listed shares in Evergrande fell as much as 15% in early trading on Monday, while broader concerns about the health of China’s real estate sector triggered a wider sell-off. The Hang Seng Property Index was down more than 6%.
