China’s cash-strapped developer Evergrande starts repaying wealth product investors with property
Chinese real estate developer Evergrande has reportedly begun repaying investors in its wealth management products with property, as the giant appeared to be on the brink of collapse.
Investors interested in redeeming wealth management products for physical assets should contact their investment consultants or visit local offices, a unit of the company’s main Hengda Real Estate Group Co Ltd unit said in a WeChat post dated Saturday.
The embattled corporation reportedly has an estimated 40 billion yuan ($6 billion) in outstanding Evergrande wealth management products.
Also on rt.com
Proposed methods of payment and details are subject to local conditions, a customer service representative told Reuters, while the earlier outline seen by the agency revealed that wealth management product investors can choose from discounted apartments, office, retail space or car parks as a form of repayment.
Evergrande repaid nearly 220 million yuan ($34 million) in overdue debts due to supplier Skshu Paint Co in the form of apartments in three unfinished property projects, a stock exchange filing revealed earlier this month.
Evergrande, China’s second-largest real estate developer by sales, is currently in the midst of its worst liquidity crisis. The company’s debts have reportedly ballooned to more than $300 billion. Last week, the property group had vowed to repay all of its matured wealth management products as soon as possible.
For more stories on economy & finance visit RT’s business section