Stock Groups

China Evergrande chairman says to ensure home deliveries and wealth products redemption By Reuters

[ad_1]

© Reuters. FILE PHOTO. Hui Ka Yan is chairman of Evergrande Real Estate Group Ltd., China’s second largest property developer. He attends an annual news conference in Hong Kong on March 29, 2016. REUTERS/Bobby Yip/File Photo

HONG KONG (Reuters) – Cash-strapped developer China Evergrande Group said it held an internal meeting late on Wednesday night, in which its chairman urged company executives to ensure the quality delivery of properties and redemption of wealth management products.

The company is under increasing political pressure to do so as retail investors and homebuyers grow more angry at Evergrande for sinking their savings into its wealth management and property properties.

Evergrande has $305 billion of debts and investors are concerned that Evergrande’s problems could be extended to other creditors, including Chinese banks.

The global markets closely watched Evergrande’s ability to pay its interest on its $1 billion dollar bond due Thursday. This relief came after the People’s Bank of China had injected 90 billion Yuan ($13.9billion) into China’s banking system. An Evergrande unit stated that it had resolved a coupon payment for an onshore bond.

Evergrande’s chairman reiterated to employees that it is important to restart constructions. Also, they should have a “highly responsibility” attitude towards helping wealth investors to redeem their products.

As the company still has a total of 40 billion Yuan ($6billion) worth of wealth management products and hundreds of thousands unfinished homes it needs to ship to its homebuyers, Evergrande chairman reiterated these messages on multiple occasions.

According to the company, it began repaying its investors through wealth management products by using real estate. Investors who are interested in reclaiming these assets for physical assets can contact local offices or their investment consultants.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are provided by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses caused by the data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.



[ad_2]