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Evergrande Group falsified $78 billion in revenue

China Evergrande Group, the embattled developer at the epicenter of China’s real estate turmoil, has been accused of inflating its revenue by more than $78 billion in the two years preceding its collapse, according to the China Securities Regulatory Commission (CSRC).

The CSRC disclosed that Evergrande’s principal onshore entity, Hengda Real Estate Group, artificially boosted its income by approximately 214 billion yuan in 2019 and a staggering 350 billion yuan in 2020. These figures were obtained by recognizing sales prematurely, as highlighted in a filing released Monday by Evergrande, citing the CSRC’s notice.

You can read more on the matter here.

What’s going on?

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• Reddit, Shareholders Guide IPO Price at Top of Range or Above (Bloomberg)

• Kosovo-Serbia Conflict: Headed Towards Invasion? (theDeepDive)

• ArriveCan vendor Dalian won government contract on same day its president joined DND (Globe)

• China's Sinochem takes first oil cargo from Canadian pipeline (BNN)

• Musk’s Ketamine Use Is Apparently In Everyone’s Best Interest (theDeepDive)

• Superconductor Scientist Engaged in Research Misconduct, Probe Finds (WSJ)

• Else Nutrition Gets Product On To Shelves Of Second Largest Private US Supermarket Chain (theDeepDive)

• Boeing to burn more cash in Q1 as it limits 737 production (CNBC)

• Texas Deportation Law Blocked Again in Volley of Court Rulings (Bloomberg)

• Staff allegedly tried to access Princess Kate’s medical records at London hospital (Globe)

What’s the latest?

• Gildan Buyout?: Sycamore Partners is considering a bid for Gildan Activewear Inc., known for owning American Apparel, amidst discussions on financing options with potential lenders. Amid an ongoing dispute between Gildan's board and some of its largest shareholders, the company acknowledged receiving a "confidential non-binding expression of interest to acquire" it and is exploring this proposal alongside other transactions with the help of a specially formed committee.

• Trans Mountain Lineup: China's Sinochem Group has acquired a 550,000-barrel shipment of crude oil, marking one of the first cargoes to be transported via Canada's new Trans Mountain Expansion pipeline. This pipeline, which is the largest new infrastructure of its kind in Canada in over a decade, aims to significantly increase the capacity for moving oil from Alberta to the Pacific Coast, enhancing export opportunities to Asia and the U.S. West Coast.

• Pension Fund Protest: Jim Leech, the former CEO of the Ontario Teachers' Pension Plan, advised against government intervention in directing Canadian pension funds' investments, emphasizing the importance of maintaining their independence to ensure optimal returns. His comments relate to calls for regulatory changes to promote domestic investments by pension funds. Leech countered concerns about insufficient domestic investment by noting that, on average, around 40% of the assets of Canada's major pension funds are invested domestically.

• Recreational Housing: Royal LePage anticipates a 5% annual increase in the median price of single-family homes within Canada's recreational property markets, projecting a rise to $678,930 in 2024. Ontario is expected to witness the highest price surge at 8%, fueled by growing consumer confidence and a rebound in market activity.

• Intel Expansion: Intel is embarking on a massive $100 billion investment to establish and expand semiconductor factories across four U.S. states, following a $19.5 billion boost from federal grants and loans, with hopes for an additional $25 billion in tax incentives. Central to this initiative is the development of what's poised to be the world's largest AI chip manufacturing site near Columbus, Ohio, expected to start operations around 2027.

Historic uranium in the USA

The stock market and stuff

• US Gov’t Suggests Up To 50-Year Sentence For Sam Bankman-Fried (theDeepDive)

• Suriname presses Exxon, TotalEnergies to combine gas developments (Reuters)

• Reddit power users balk at chance to participate in IPO as Wall Street debut nears (CNBC)

• Short Seller Russell Clark Considers Restarting His Hedge Fund (Bloomberg)

• Cathie Wood Sounds Alarm on Possible Market Bubble, Defends Exit From Nvidia (theDeepDive)

In the juniors

• IberAmerican Lithium To Acquire Strategic Minerals Europe In All-Stock Deal (theDeepDive)

• ATHA Energy Reveals 2024 Exploration Plans, Including 10,000+ Metres Of Drilling (theDeepDive)

• Sigma Lithium To Enter Arbitration With LG Group Over 2021 Offtake Agreement (theDeepDive)

• Anfield, ATHA Energy Added To Uranium Mining Index (theDeepDive)

• First Phosphate Intersects 9.44% P2O5 Over 89 Metres At Begin-Lamarche (theDeepDive)

• Mayfair Gold Sees Muddy Waters Demand Board Changes (theDeepDive)

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