Chairman Xu Jiayin said the procedures will be fair and transparent. But the manager of Evergrande Wealth admitted he cashed out ahead of schedule in May due to "personal emergencies".
The headquarters of Evergrande Group in Shenzhen, Guangdong Province. Photo from CFP
By HUANG Yu
Enraged investors stormed the Shenzhen headquarters of Evergrande Group on September 12, asking for answers about financing products that Evergrande seems unlikely to cash out when they fall due. Many of the investors were former Evergrande employees.
Issues with Evergrande Wealth products have been doing the rounds on social media sites since the beginning of the month. Investors have now been offered three choices: Payments by installment, discounts on Evergrande properties, or mortgage subsidies for those already buying Evergrande properties.
On September 10, the chairman of Evergrande XU Jiayin said everyone will be able to cash out.
“I can lose everything, but the Evergrande Wealth investors must not,” Xu said, admitting Evergrande is facing unprecedented difficulties. Xu also said the procedures will be fair and transparent, a matter of concern to many.
DU Liang, general manager of Evergrande Wealth admitted buying products worth 7.3 million yuan on May 25 and cashing out ahead of schedule on May 31 due to a “personal emergency.” At the time, Du assured investors that Evergrande Wealth was doing “just fine.”
The scandal-plagued Evergrande announced on September 14 that due to the negative coverages from media, the company's sales volume in September is likely to continue going down, putting more pressure on the already short cash flow.
The company is looking to sell its EV and property management unit, but so far no one has made an offer.