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China debt crunch

Evergrande's poor internal controls allowed loan scheme: probe

Management's 'special financing project' cited for $2bn seized by banks in 2022

A China Evergrande Group housing sales storefront in Guangzhou. (Photo by Yusuke Hinata)

GUANGZHOU -- An independent investigation into property giant China Evergrande Group found that weak internal controls and mismanagement were behind the convoluted financing arrangements that led to $2 billion being seized by banks.

The company, which is undergoing restructuring, announced the results of the probe on Wednesday.

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