China Evergrande Group's CEO, CFO quit on $2-billion claim: Report

The indebted company was investigating how deposits worth 13.4 billion yuan belonging to the unit, Evergrande Property Services, were used as collateral for pledge guarantees and seized by banks

China Evergrande Group said that its chief executive officer and finance head have resigned after a preliminary probe found their involvement in diverting loans secured by its publicly listed unit to the group.

The indebted company was investigating how deposits worth 13.4 billion yuan ($1.99 billion) belonging to the unit, Evergrande Property Services, were used as collateral for pledge guarantees and seized by banks.

The pledges threatened to wipe out most of the cash the unit was holding.

The company said the loans secured by the pledges, which involved three sets of deposits, “were transferred and diverted back to the group via third