Receivers seek five-year asset probe of ex-Evergrande CEO
SingTao · 1 SOURCESabout 2 hours ago2 MIN
Summary
Hong Kong’s High Court is considering whether court-appointed receivers should be allowed to conduct a wide-ranging investigation into former China Evergrande Group chief executive Xia Haijun’s asset dealings since 2021. The application follows earlier freezing orders over HK$60 billion in global assets linked to Evergrande founder Hui Ka-yan, his former wife Ding Yumei, Xia and others, together with disclosure orders. Receivers say Xia failed to comply with asset disclosure requirements and may have concealed about HK$580 million in assets, while Xia argues the proposed inquiry is disproportionate. Judge Paul Lam Ho-man reserved his decision after hearing both sides, and also heard Xia’s separate bid to remove US assets from the receivership order
Key Points
- After Evergrande was ordered wound up, the High Court appointed Edward Middleton and Wong Wing-sze of Alvarez & Marsal as liquidators
- The court had earlier frozen HK$60 billion in worldwide assets held by Hui Ka-yan, Ding Yumei, Xia Haijun and others, and ordered disclosure
- Receivers told the court Xia, who was said to be living long-term in California, had not appealed the freezing order and had not complied
- Counsel for the receivers said evidence suggested two or three trusts involving Xia’s US assets had been merged, calling his apology merely superficial
- Xia’s counsel argued he had already disclosed assets twice, remained only a defendant, and should not face a retrospective probe reaching back to 2021
Why It Matters
The case goes to how far Hong Kong courts can empower receivers to trace, identify and preserve assets in cross-border insolvency disputes involving major mainland developers. For creditors and market participants, the ruling may affect how effectively freezing and disclosure orders can be enforced when assets are spread across jurisdictions, including the United States