Source: Bloomberg
China Evergrande Group made international investors bloodless, causing the financial market to be turbulent and causing thousands of suppliers to fall into trouble. However, it may be that the developer who eventually promotes the Chinese government may not be able to take action.Pay to the people who invest in their wealth management products.
Nearly two years after Evergrande's debt defaults, Xu Jiayin, the founder and chairman of the board of directors of the billionaire, was taken for mandatory measures by the police for suspected illegal crimes; employees of Evergrande's wealth management companies reportedly reported that the police took criminal compulsory compulsorymeasure.According to Chinese media reports, Peter XU, the son of Xu, who had been in charge of the company's wealth management business, was also detained.
The company's wealth management department said that it was impossible to pay financial products from retail investors in August.Like many other Chinese developers, Evergrande, when other financing channels became increasingly difficult, issued high -yield wealth management products to individual investors.
These compulsory measures are in line with the Chinese government's preferential consideration of people's livelihood rather than the interests of other parties such as foreign bond holders, and also in line with the consideration of President Xi Jinping to avoid social turmoil and pursue "common prosperity".The government's actions also sent signals to other liability developers, allowing them to focus on completing the completion of house delivery and providing payment for consumers.
"Because the real estate industry is unlikely to become a growth engine, a well -known real estate tycoon is a political effective goal," said Rana Mitter, a professor of Chinese political science at Oxford University, said. "The Chinese government wants to prove what it think is right.The unhelpful business behavior of society will be punished. "
Evergrande's wealth management business was in trouble two years ago. At that time, cash tensions caused it to be unable to pay about 4.0 billion yuan ($ 5.5 billion) investment wealth management products on schedule.The amount of redemption is replaced with a discounted property.
Ms. Zhao (transliteration) is one of the investors. In the past two years, she has been waiting for the repayment of squeezing toothpaste.After repeatedly urging the police to investigate, she finally got the notice of her complaint this month.
What surprised her even more, the Shenzhen police and relevant departments said they would handle the clues provided by tens of thousands of retail investors during the National Day holiday.She quickly passed the news.
"It's been two years, and I have been mad," Ms. Zhao said, because of security, she asked not to disclose the full name.
retail investors have been neglected in the past two years when they seek legal aid.According to a number of investors who do not want to be named, the local police informed some investors that they could not formally report the case without the consent of the superior department.
Now they are told that they can report the case through various channels. From face to face to the Internet, the easiest way is to send formatting text messages.Many people soon got notified by their cases.Shenzhen police publicly called on investors to provide clues to relevant departments in mid -September.
For Evergrande's wealth management product investors and all other creditors of this falling real estate giant, the road to get the payment may be long, but the aforementioned Ms. Zhao is still optimistic.
"I want to get back my money, all this can end as soon as possible," she said.
