[Epoch Times November 10, 2021](Epoch Times reporter Li Bing comprehensive report) On the evening of November 9, Kaisa Group, a large Chinese real estate developer, issued an announcement on the Hong Kong Stock Exchange stating that Shenzhen Jinheng Wealth Management Co., Ltd. has issued Certain wealth management products have not been redeemed after maturity.
Kaisa’s announcement also stated that Kaisa Group (Shenzhen) Co., Ltd., a subsidiary of the company, had provided certain guarantees for the payment. The Group is determining the amount involved and exploring remedial measures for this problem. Trading of the company’s shares will continue to be temporarily suspended until further notice.
According to the “Daily Economic News” report, in the middle of the night on November 8, Kaisa Group’s WeChat account issued a statement stating that recently, affected by Kaisa Group’s liquidity difficulties, it was issued by Shenzhen Jinheng Wealth Management Co., Ltd. and Kaisa Group (Shenzhen) Co., Ltd. The company’s guaranteed wealth products have overdue for redemption, which has caused trouble to all investors. The company apologizes.
Kaisa Group announced on November 4 that recently, products issued by Jinheng Wealth and guaranteed by Kaisa Group had overdue payment. At present, Jinheng Wealth has not paid more than 300 million yuan (RMB, the same below) at maturity, and the total amount of wealth management products is about 12.7 billion yuan.
“China Fund News” reported that on the morning of the 4th, investors of some wealth management products gathered at the Kaisa Group’s office in Shenzhen Kerry Center to seek a payment plan, and then the exchange venue was transferred to the Luohu Friendship Hotel. Mai Fan, President of Kaisa Group, Wan Bing, Chairman of Jinheng Wealth Group, and others are soliciting opinions from investors and discussing the formulation of a payment plan. About 500 investors were defending their rights on the spot, and the situation was once chaotic.
On November 5th, Kaisa Group and its three subsidiaries announced the suspension of trading on the Hong Kong Stock Exchange at the same time. The announcement did not explain the reason for the suspension.
Kaisa is another well-known Chinese real estate company that has fallen into financial crisis after Evergrande and Fantasia. Beginning in mid-to-late October, internationally renowned rating agencies Fitch and Standard & Poor’s (S&P) downgraded Kaisa Group’s rating on the grounds of financial crisis.
Editor in charge: Li Qiong#
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