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Evergrande begins repaying wealth product investors with property

Stock MarketsSep 19, 2021 05:05AM ET
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© Reuters. FILE PHOTO: An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/File Photo/File Photo

BEIJING (Reuters) -Cash-strapped developer China Evergrande Group has begun repaying investors in its wealth management products with real estate, a unit of its main Hengda Real Estate Group Co Ltd unit said.

Evergrande, with over $300 billion in liabilities, is in the throes of a liquidity crisis https://www.reuters.com/business/exclusive-china-evergrandes-lenders-weigh-up-loan-losses-rolling-over-credit-2021-09-17 that has left it racing to raise funds to pay its many lenders and suppliers. It has a bond interest payment of $83.5 million due on Thursday.

The company said in a WeChat post dated Saturday that investors interested in redeeming wealth management products for physical assets should contact their investment consultants or visit local offices.

Financial news outlet Caixin reported on Sunday that an estimated 40 billion yuan ($6 billion) in Evergrande wealth management products are outstanding. Such products are typically held by retail investors.

Specific payment methods and details are subject to local conditions, a customer service representative told Reuters on Sunday.

According to a proposal seen earlier by Reuters that Evergrande did not confirm, wealth management product investors can choose from discounted apartments, office, retail space or car parks for repayment.

Earlier this month, a stock exchange filing showed that Evergrande had repaid https://www.reuters.com/business/fitch-downgrades-china-evergrande-sees-probable-default-2021-09-08 219.5 million yuan in overdue debts due to supplier Skshu Paint Co Ltd in the form of apartments in three unfinished property projects.

On Sept. 10, Evergrande had vowed to repay https://www.reuters.com/article/china-evergrande-debt-idUSL1N2QC0Q9 all of its matured wealth management products as soon as possible.

($1 = 6.4655 Chinese yuan renminbi)

Evergrande begins repaying wealth product investors with property
 

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Comments (3)
akljsdf askldf
akljsdf askldf Sep 19, 2021 7:40PM ET
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great news, means no more cash outflow for the troubled developer, buy buy buy
Will Ribeiro
Will Ribeiro Sep 19, 2021 9:35AM ET
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That means game over
Tomek Mi
Tomek Mi Sep 19, 2021 9:35AM ET
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Why
Steve Bucher
Steve Bucher Sep 19, 2021 2:41AM ET
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Of course, during a housing bust pay off your debt with assets which are losing their value.
Meru Pet
Meru Pet Sep 19, 2021 2:41AM ET
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they don't have so many ways to invest. the illusion may stay.
 
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