[Epoch Times November 23, 2021](Epoch Times reporter Li Bing comprehensive report) On the evening of November 22, China’s large real estate developer Kaisa Group released the Jinheng Wealth product redemption plan, which will be in installment according to the order of product expiration. Redemption method, redemption of principal and interest successively.
Specifically, for the principal of the investor, 10% will be redeemed in the month of maturity, and 10% will be redeemed every 3 months thereafter; for the investor’s interest, no interest will be paid before the principal expires. Along with the principal, the principal 10% will be redeemed in the month when the gold is due, and 10% will be redeemed every 3 months thereafter.
At the same time, for the deferred principal, the deferred interest will be paid to investors at the benchmark one-year commercial loan interest rate of 4.35%. The interest will be calculated from the maturity date of Jinheng Wealth’s products until the final principal is redeemed. Stop interest calculation; the deferred interest will be paid 50% in the third month after the last principal and interest due, and the payment will be completed in the sixth month; the capital of Jinheng Wealth’s products will be paid on the 20th of each month Gold, maturity interest and deferred interest.
Kaisa Group stated that the company is actively disposing of group assets, and the funds recovered are used to redeem Jinheng Wealth’s principal, interest due and deferred interest.
As of the beginning of November, the principal of the wealth management products issued by Jinheng Wealth and guaranteed by Kaisa Group was 11.913 billion yuan (RMB, the same below), the maturity interest was 875 million yuan, and the total principal and interest was 12.788 billion yuan.
On November 4, Kaisa Group announced that the products issued by Jinheng Wealth and guaranteed by Kaisa Group had overdue payment.
“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. About 500 investors were defending their rights on the spot, and the situation was once chaotic.
On November 5, Kaisa Group and its three subsidiaries announced the suspension of trading on the Hong Kong Stock Exchange at the same time, and the announcement did not explain the reason for the suspension.
On the evening of November 9, Kaisa Group issued an announcement on the Hong Kong Stock Exchange stating that certain wealth management products issued by Shenzhen Jinheng Wealth Management Co., Ltd. had not redeemed these products after maturity.
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.
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