Written by: 西枫westca
Proofread by: Ermat
On September 10, Jiayin Xu, Chairman of the Board of Directors of Evergrande Group, promised on behalf of the group: All funds invested in Evergrande wealth management products must be paid in full, not a penny less. At the same time, he denied the rumors that Evergrande executives paid in advance. He also commented: “All redemptions must be planned and principled, no one can make specializations, and the company has not previously and will never allow early redemptions.”
According to Economic Observer Network on September 13, Evergrande Group announced three redemption plans for investors to choose from, namely: cash instalment redemption, physical asset redemption, and offsetting the final payment of the house. Investors can choose one of the three options or any two or three options to redeem. As the executive director and general manager of Evergrande Wealth, Liang Du was forced to admit that he had paid off the financial products he purchased in Evergrande in advance at the end of May, amounting to more than 7 million yuan, when many investors questioned him at the scene.
The amount owed by countless ordinary investors only accounts for 40 billion in the total amount owed by Evergrande Wealth. But when they take collective action it means that Evergrande has completely lost its market credibility. The fact that Evergrande executives are the first to run away is more proof that Evergrande, a giant in the real estate industry, is falling apart and collapse is imminent.