What’s New in Evergrande Real Estate Group Ltd
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The wife of the founder of China Ever Grande’s billionaire has millions of wealth management products issued by the real estate group, according to executives trying to soften individual investors for fear of losing investment. I paid the dollar.
Wife, Din Yumei Xu JiayinFormer China’s wealthiest man, chairman of Evergrande, paid RMB 20 million ($ 3 million) for the company’s high-yielding investment products on July 8.
Hundreds Shareholders have come down At the group’s Shenzhen headquarters, on rare occasions, they expressed public anger and demanded that the wealth management products be returned.
Demonstrations show the intensification of the liquidity crisis of China’s most debt-rich developers and the company’s instability. Wider real estate sector, This accounts for more than a quarter of the country’s economic activity.
Evergrande Wealth Management executives said the company had about 80,000 investors, half of whom invested a total of RMB 40 billion in various projects used to close the parent group’s funding gap. ..
However, investors were not impressed with Hui’s wife’s investment as a demonstration of his commitment to the group, pointing out the property he got from the company he founded in 1996, and he held a 71% stake. I am.
“This is a drop in a bucket of Hui’s wealth,” an investor at the company’s headquarters told the Financial Times. “Hui has paid himself billions of dollars in dividends and is now trying to convince his wife that he is on the same ship as us.”
Hui has announced plans to repay 10% of its initial funding by September and repay the full amount in 27 months. Group executives said he was trying to minimize losses.
Employees at Evergrande said they were told that the company had a bright future when they purchased wealth management products in May and June. However, two Evergrande staff members who said they had invested more than RMB 300,000 said they threatened to be arrested if their boss left the company.
“We have been trapped in the dark until the last moment,” said one. “Everyone is furious. We have been abandoned by the company. What we can do is protest investors and encourage them to grow big enough that authorities have to intervene.”
Evergrande is also trying to convince investors to accept real estate at significant discounts rather than cash repayments, such as a 28% discount on residential apartments.
However, some investors have demanded that they buy in their home state and have rejected offers that have been approved by local governments that are worried about falling real estate prices. Shareholders also questioned the repayment plan because of fears that the company could soon collapse.
“Evergrande is declining and the chances of a rebound are small,” said a Shenzhen-based shareholder who purchased RMB 1 million worth of wealth management products later this month.
Evergrande’s $ 14 billion offshore debt never expires this year, but the company faces interest payments on its dollar-denominated debt this month.
Evergrande’s land subsidiary said it applied for a full-day suspension of bond trading in mainland China on Thursday.
Developers revealed that they hired a restructuring advisor this week, Increased risk of default About $ 89 billion in debt. Two Evergrande Wealth executives confirmed that the governing authorities had instructed banks not to expect interest payments next week.
Evergrande executives said the company had too many funding gaps to fill, given that it had to pay suppliers and repay investors to complete the project.
Hui appeared in an image posted on social media, showing that senior management has signed a guarantee to complete the project. As of the end of June, the company is working on 778 developments in more than 200 cities across China.
Evergrande discloses $ 3 million investment by founder’s wife to appease investors
Source link Evergrande discloses $ 3 million investment by founder’s wife to appease investors