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Evergrande begins repaying wealth product investors with property

China Evergrande shares plummet on default risks
China Evergrande shares plummet on default risks   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p><span class="caps">BEIJING</span> -Cash-strapped developer China Evergrande Group has begun repaying investors in its wealth management products with real estate, a unit of its main Hengda Real Estate Group Co Ltd unit said.</p> <p>Evergrande, with over $300 billion in liabilities, is in the throes of a liquidity crisis https://www.reuters.com/business/exclusive-china-evergrandes-lenders-weigh-up-loan-losses-rolling-over-credit-2021-09-17 that has left it racing to raise funds to pay its many lenders and suppliers. It has a bond interest payment of $83.5 million due on Thursday.</p> <p>The company said in a WeChat post dated Saturday that investors interested in redeeming wealth management products for physical assets should contact their investment consultants or visit local offices.</p> <p>Financial news outlet Caixin reported on Sunday that an estimated 40 billion yuan ($6 billion) in Evergrande wealth management products are outstanding. Such products are typically held by retail investors.</p> <p>Specific payment methods and details are subject to local conditions, a customer service representative told Reuters on Sunday.</p> <p>According to a proposal seen earlier by Reuters that Evergrande did not confirm, wealth management product investors can choose from discounted apartments, office, retail space or car parks for repayment.</p> <p>Earlier this month, a stock exchange filing showed that Evergrande had repaid https://www.reuters.com/business/fitch-downgrades-china-evergrande-sees-probable-default-2021-09-08 219.5 million yuan in overdue debts due to supplier Skshu Paint Co Ltd in the form of apartments in three unfinished property projects.</p> <p>On Sept. 10, Evergrande had vowed to repay https://www.reuters.com/article/china-evergrande-debt-idUSL1N2QC0Q9 all of its matured wealth management products as soon as possible.</p> <p>($1 = 6.4655 Chinese yuan renminbi)</p> </div>