Evergrande is resorting to new means to pay off investors.
(Photo: Bloomberg)
Beijing The ailing Chinese real estate giant Evergrande wants to pay off investors in its property wealth management products. One company division announced that this procedure has already begun.
Via the messenger service WeChat, the group said on Saturday that investors who are interested in the return of asset management products for material assets should contact their investment advisor or visit a local branch.
According to the financial magazine Caixin, Evergrande has an estimated 40 billion yuan in asset management products outstanding. Such products are typically held by retail investors.
Specific payment methods and details are dependent on local conditions, a customer service representative said on Sunday. According to a proposal that was previously presented to Reuters but not confirmed by Evergrande, investors can choose between discounted apartments, offices, retail space or parking spaces for the repayment.
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On Saturday, the group also admitted misconduct by some executives. They would have prematurely replaced the company’s investment products. The processes were very serious and the managers were asked to repay the funds received early.
Evergrande is groaning under $ 300 billion in debt
The second largest real estate developer in China is desperately trying to find fresh funds to pay its numerous banks, suppliers and bondholders on time. He groans under a debt burden of more than $ 300 billion.
Evergrande defaulted on bond interest payments in June. Subsequent downgrades of the credit rating by rating agencies caused the share price to collapse.
The Chinese central bank and the financial regulator called on Evergrande management in August to reduce debt and stabilize the group.
More: How Evergrande could still avert the impending bankruptcy – questions and answers