Real estate company

Chinese real estate company – whose ex-president is worth around $ 11.2 billion – accused of defrauding investors

China’s second-largest real estate developer, China Evergrande Group, is facing a massive liquidity crunch that has angered investors and homebuyers.

Evergrande’s financial problems: Of the society years of borrowing have resulted in colossal debt, totaling more than $ 300 billion, and a struggle to pay overdue bills and multiple wealth management products, reported the Washington post.

  • Taking advantage of the Chinese real estate boom, Evergrande has made numerous acquisitions over the past decade. Evergrande is a real estate developer but has also dabbled in other businesses such as bottled water and electric cars.

  • When China introduced measures that would monitor and manage the total debt levels of major developers last year, Evergrande was forced to suspend housing projects and sell completed properties at reduced prices, according to the New York Times.

  • Evergrande was previously able to stay afloat by relying on presales. According to Bloomberg, investors have made down payments on approximately 1.5 million properties.

  • Suppliers and creditors have chased the company for hundreds of billions of dollars in unpaid bills, while homebuyers who paid for apartments that have yet to be completed have filed lawsuits. Eight hundred projects under Evergrande are unfinished, so 1.2 million people are still waiting for homes that they have already partially purchased.

  • The Shanghai Stock Exchange also suspension of trading of the Evergrande bond from May 2023 after a drop of more than 30%. Hong Kong-listed shares of Evergrande have so far fell more than 80% this year.

The forks have arrived: On Monday, a crowd of around 100 angry investors flocked to the failing Chinese firm’s headquarters in Shenzhen, amid growing fears of its collapse, Reuters reported.

  • Protestant crowds gathered in the lobby of the facility to demand repayment of loans and products.

  • More than 60 uniformed security guards blocked the main entrances to the building at noon as protesters shouted at company officials addressing the crowd.

  • The company’s legal representative, Du Liang, read a proposal to the crowd that included repayment plans for holders of wealth management products.

  • Based on Evergrande’s proposal, investors can “choose to accept 10% of the principle and interest of the matured product now and the rest via quarterly installments of 10%, payment by real estate assets or by using the value of the proceeds to offset the home purchase payments. “

  • Protesters scoffed at the proposal, one woman replied, “A business as big as yours, how much money has been swindled from ordinary people?”

  • A protester, surnamed Wang, expressed concern that the proposed repayment would take two years, noting that “the company will be bankrupt by the end of the year.”

  • Wang said he had invested 100,000 yuan ($ 15,500) in Evergrande. His relatives also invested around 1 million yuan ($ 155,005) in total.

  • Thusday, security personnel took away protesters who remained gathered in front of the company’s headquarters.

The founder of Evergrande, Hui Ka Yan, whose current net worth remains at $ 11.2 billion, resigned as president from the company’s main real estate arm last month.

Featured Image Via AFP News Agency

Do you like this content? Read more about NextShark!

‘Valorant’ Twitch streamer Ohlana goes from apparent suicide at 26

Asian man assaulted by man having racist crisis in New York 7-Eleven

Sex offender who pushed his Asian grandmother on train tracks arrested in New York

NJ nonprofit would force intern to work harder by threatening not to pay her

Source link

Leave a Reply

Your email address will not be published.