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| Evergrande execs redeemed investment products ahead of looming bankruptcy | Evergrande execs redeemed investment products ahead of looming bankruptcy |
| (about 1 month later) | |
| Six top managers of Chinese real estate major Evergrande had redeemed some of its investment products in advance earlier this year, the company said on Saturday, a day after it admitted to a risk of going bankrupt. | Six top managers of Chinese real estate major Evergrande had redeemed some of its investment products in advance earlier this year, the company said on Saturday, a day after it admitted to a risk of going bankrupt. |
| Earlier this week, Evergrande said it was under “tremendous pressure” and may not be able to meet its crippling debt obligations. | Earlier this week, Evergrande said it was under “tremendous pressure” and may not be able to meet its crippling debt obligations. |
| The executives, who haven’t been named, made early redemptions of 12 investment products between May 1 and September 7, the heavily indebted property group said in a statement, providing no details on the nature of the products. | The executives, who haven’t been named, made early redemptions of 12 investment products between May 1 and September 7, the heavily indebted property group said in a statement, providing no details on the nature of the products. |
| “Regarding the early redemption of Evergrande wealth investment products by some managers, the group company views the matter seriously,” the corporation said. | “Regarding the early redemption of Evergrande wealth investment products by some managers, the group company views the matter seriously,” the corporation said. |
| The group also warned of severe penalties in case the redeemed funds are not returned within a certain time frame. | The group also warned of severe penalties in case the redeemed funds are not returned within a certain time frame. |
| Evergrande, China’s second-largest real estate developer by sales, is facing a mounting liquidity crisis, forcing it to raise extra funds to pay lenders and suppliers. The company’s debts have reportedly ballooned to more than $300 billion. | Evergrande, China’s second-largest real estate developer by sales, is facing a mounting liquidity crisis, forcing it to raise extra funds to pay lenders and suppliers. The company’s debts have reportedly ballooned to more than $300 billion. |
| Evergrande’s case is the embodiment of China’s freewheeling epoch of borrowing and building. Uncertainty over the developer’s ability to meet its funding obligations, which is reportedly equal to 2% of China’s gross domestic product, has triggered market turbulence. | Evergrande’s case is the embodiment of China’s freewheeling epoch of borrowing and building. Uncertainty over the developer’s ability to meet its funding obligations, which is reportedly equal to 2% of China’s gross domestic product, has triggered market turbulence. |
| The corporation has been hit by ratings downgrades, with both S&P Global Ratings and Fitch Ratings warning of the risk of default. The company’s shares have plunged nearly 80% so far this year, with trading of its bonds repeatedly halted by Chinese stock exchanges in recent weeks. | The corporation has been hit by ratings downgrades, with both S&P Global Ratings and Fitch Ratings warning of the risk of default. The company’s shares have plunged nearly 80% so far this year, with trading of its bonds repeatedly halted by Chinese stock exchanges in recent weeks. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
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