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Evergrande: Top executives got their money back early

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Chinese property developer Evergrande Group is plagued by bankruptcy rumors, and it has been revealed that some of the group’s executives have deducted money from invested products before maturity.

evergrande group bankruptcy

Major foreign media reported on the 19th that 44 high-ranking people in Evergrande group owned investment products from an investment company affiliated with Evergrande. It was discovered that they had received early repayment. The names of the six individuals and the investment products were not disclosed.

Critics say the company’s officials, who knew in advance the company’s ability to repay, took advantage of the confidential information. According to the report, the company did not care about the expected bankruptcy of the company and the losses suffered by investors, as the group was unable to meet its debt on a large scale. Particularly, public opinion rises due to the fact that some individual investors do not recover their investments after maturity.

Company officials stated, “We take this matter very seriously and have made sure to return all of the money received from the six managers within the stipulated timeframe.”

The group said, “The group must strictly implement the repayment plan already announced. “Be fair and equitable and do not discriminate,” it added.

Evergrande Group’s debt is said to have reached 1.97 trillion yuan (above $300 billion) in the first half of this year.

China’s economy has continued to grow by relying mainly on borrowing, yet liquidity has deteriorated sharply because of the slowdown of the real estate market and various government regulations to stabilize housing prices.

A substantial presence.

Evergrande has a presence everywhere. The company’s main business is real estate, and it is China’s second-largest property developer by sales.

  • Over 1,300 projects owned by Evergrande operate in over 280 cities across China.
  • More than 310 cities in China are served by the company’s property services arm.
  • With seven units that cover domains as diverse as electric vehicles, health-care facilities, consumer products, and video and television production, the company has something for everyone.
  • According to its website, the firm has 200,000 employees, but indirectly creates more than 3.8 million jobs each year.
  • Evergrande shares and bonds are included in several Asian stock indexes.

Moreover, international rating agencies Standard & Poor’s (S&P) and Fitch downgraded the company’s bonds, warning that the group could default. There is growing concern that if Hengda Group defaults, it will shock the entire Chinese economy.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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