BEIJING (Reuters) – Earlier this year, six executives from Evergrande had redeemed some investment products from the company in advance. The heavily indebted company reported the news on Saturday.
The six executives from the company made their early redemptions from 12 of the investment products between May 1st and Sept 7th, which was stated clearly by Evergrande on their official website where they haven’t shared the details of their executives and the products.
The company, in a report, said that “The group company is taking a look deeper in the matter with a serious note regarding the redemption of Evergrande’s wealth investment products earlier this year by some managers.”
The six managers are requested by the company to return in a certain time period; Evergrande said to cover all the funds redeemed by the managers in advance, and penalties would be imposed on them.
Evergrande is having a liquidity crisis with the company having $300 billion liabilities which requires the raise of funds to be covered in order to pay off the suppliers and the lenders in the market.
The organization has encapsulated China’s freewheeling time of getting and building. Vulnerability about its capacity to meet financing commitments – equivalent to 2% of China’s GDP – has sent good news through business sectors.
Recent downgrades have hit the group during the evaluation period, with both S&P Global Ratings and Fitch Ratings cautioning of the danger of default.
Early Saturday morning, China Evergrande insisted that the group appends incredible significance to the early recovery of Evergrande wealth management items by certain administrators and has now required all the cash reclaimed by the six directors to be returned inside a period limit. The firm will seriously rebuff these directors.
On the 12th of September, Du Liang, the senior supervisor and legitimate agent of the Evergrande Wealth Management division, conceded that he recovered items on May 31. He clarified that the early recovery was because of a family crisis.
The Evergrande Wealth Management is a resource management feature presented by the Evergrande Group. As per the company’s true site, the business section of Evergrande Wealth Management is primarily separated into two classes: Wealth management counseling and local area financing.
The wealth management furnishes qualified financial backers with updated projects and monetary counseling administrations, for example, top-of-the-line monetary services and private speculation; the other one depends on the huge proprietors of Evergrande Real Estate to give a full scope of local area financing services.
It has been seen that Evergrande shares have gradually fallen since the beginning of this year. There is a report of the share price of HK$2.54 that was fallen this year by 82.67%, having a market value of around HK$33.66 billion.
.The price of new energy vehicles by Evergrande was fallen by 90.13% while having a share price of HK$2.98 through a report this year, with a market value that is about HK$29.11 billion. There was also a decline of 48.55%, according to the report of Evergrande Property Services, having a share price of HK$4.6.