[Epoch Times December 17, 2021](Epoch Times reporter Xu Jian comprehensive report) China Fortune Land Development, one of China’s largest real estate developers, who is undergoing restructuring due to heavy debts, said that he has lost contact with the entrusted financial management party. This may result in the “lost whereabouts” of US$313 million. The company has now reported the case.
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On December 15, China Fortune Land Development stated in a stock exchange document that it had entrusted the funds to a company registered in the British Virgin Islands-“China Create Capital” to invest in fixed income. For financial products, the annual return on investment is expected to be 7% to 10%.
The background of this fund is: China Fortune Land Development’s overseas subsidiary “Global Industry Investment Co., Ltd.” and Wingskengo Limited signed the “Overseas Wealth Management Entrusted Framework Agreement”. The latter provides financial entrustment services for it. The agreement is valid until December 31, 2022. . From August to December 2018, China Fortune Land Development injected US$313 million in wealth management funds to “Zhongke Chuang Capital”. This entrusted wealth management matter was approved by the company’s management.
However, China Fortune Land Development now stated that it could not contact “Zhongke Capital”. China Fortune Land Development has reported the case to the Public Security Bureau of Langfang City.
It turned out that China Fortune Land Development was not entrusted by anyone. According to the domestic media “China Business News”, this missing “Zhongke Chuang Capital” was established in 2015, and the actual controller of the company is Zhang Wei. Zhang Wei was sentenced to life imprisonment at the end of November this year for being involved in a criminal syndicate. The wealth management company that lost contact with China Fortune Land Development is an overseas company controlled by Zhang Wei.
44 people headed by Zhang Wei were suspected of illegal detention, crimes of provocation, extortion, and false lawsuits for “organizing, leading, and participating in underworld organizations”, through the establishment of the “88 Fortune Network” network financing platform, and fictitious investment projects, etc. He was sentenced for various crimes such as crimes of crime and fraud.
China Fortune Land Development said that it is not yet clear how the funds will affect its profits. It added that it will “actively cooperate” with the police investigation, “to protect the interests of the company and shareholders.”
Since the CCP tried to cool the real estate market, China Fortune Land Development has had a bad year like other Chinese real estate companies. Since the beginning of 2021, China Fortune Land Development’s stock price has fallen by more than 70%.
And China’s largest and most indebted developer Evergrande Group defaulted on its debt earlier this month. For a long time, analysts have been worried that its collapse may bring greater risks to the Chinese real estate market, thereby damaging homeowners and the wider financial system.
Editor in charge: Lin Yan#
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