[Epoch Times September 11, 2021](Interviews by Epoch Times reporters Gu Xiaohua and Zhang Yujie) The financial crisis of China Evergrande Group is getting worse. Evergrande’s wealth management platform “Hengda Wealth” exposed a redemption storm, and a large number of investors defended their rights and demanded hard-earned money. Insiders disclosed to The Epoch Times that the news of the “Hengda Wealth” explosion was not groundless. Evergrande employees had been forced to “finance” in disguise, involving employees, relatives, friends, customers and many other investors. The amount of funds was huge and the situation was serious.
Mainland media reported on September 10 that investors of Evergrande Wealth recently revealed that the Evergrande Wealth Management products they invested in had redemption problems. Many of the investors were Evergrande’s current employees and former employees.
The Epoch Times reporter learned from insiders on September 10 that many of Evergrande’s employees had started a strike due to a thunderstorm in wealth management products. To defend rights. Among the defenders are employees whose salaries have been owed in various branches.
Evergrande Wealth (formerly known as “Hengda Financial Services”) was established in 2015. It is a wealth management business platform under Evergrande Group and is 100% owned by Evergrande Group.
On the 10th, Xu Jiayin, the founder of Evergrande Group and chairman of the board of directors, said at the Evergrande Wealth Conference: “We must ensure that all due wealth products are fully redeemed as soon as possible, and a penny cannot be less.”
Xu Jiayin’s remarks failed to eliminate investors’ concerns. An insider revealed to the Epoch Times reporter that Evergrande once made promises to employees but failed to fulfill them. Now some executives have run away.
Insider: Evergrande’s wealth explosion is not alarmist talk and the crisis is serious
Ms. Zhang, a family member of a current employee of Evergrande (not Evergrande Fortune), told Epoch Times reporters on the 10th that her husband is one of many employees who bought Evergrande Fortune. Numerous and huge funds.
She said: “Let me tell you this, the people around him (Mr. Zhang) put money in Evergrande, I have never heard of less than 600,000 yuan, it is so scary, it is really scary.” Ms. Zhang estimates that among investors, Evergrande’s employees alone involve 80,000 to 100,000, as well as their relatives and friends, and their customers.
Ms. Zhang used to be engaged in network control work. After hearing the news of Evergrande’s wealth management explosion on September 8, she collected relevant news on various platforms and analyzed Evergrande’s current liabilities and real estate. She found that Evergrande’s wealth management The news of the thunderstorm is not only true, but the situation is very miserable.
She told reporters: “To be honest, I used to work in the Internet industry and read a lot of rumors. I also suppressed them. I was also one of the sinners. I also suppressed some negative economic news. I became a victim. After I became a first point of view, I realized that these things were all true. There are so many people who have been victimized. It is really so miserable. It is really cruel to suppress these news. It’s a matter of. How miserable I told you, it’s not that I exaggerated, I really don’t need to exaggerate, because the reality is already exaggerated enough, and it’s already breaking my three views.”
Evergrande employees were once forced to “manage money” in disguise
Ms. Zhang told reporters that at the beginning of this year, Evergrande’s branches requested from top to bottom that “if they don’t invest in financial management, they will be evaluated and dealt with”, allowing employees to purchase Evergrande wealth products with a minimum indicator of 100,000 yuan and at the same time complete customer tasks. , And claimed that “Hengda will give you the bottom line.”
She said: “Various groups put pressure… Later, a paper agreement was signed, and it was posted every day:’Who else hasn’t bought it, what if you don’t buy it, wait for a fine, and fine it a thousand. Not enough, is there a fine of five thousand. “There is such a verbal threat.”
“At that time, the employees of Evergrande Financial Services (Hengda Wealth) were forced to set targets to complete their tasks. They must ask how many people to invest the money. Otherwise, they would be forced to stay up late to work and work every day until the early hours of the evening. There are various threats. Ah, for meetings, they have been meeting forever. They voted for themselves, the family also voted, and they have to contact old customers. Some people bought hundreds of thousands or even millions.”
Ms. Zhang said that after sorting out, investors found that no one can get any money with an investment of more than 100,000. On September 9th, mainland social media also circulated a “Hengda wealth management product redemption plan”, showing that “the principal is less than 100,000 will be redeemed; half of the principal of 100,000 will be redeemed, and the other half will be redeemed one year later; the principal is 10 If the amount of RMB 10,000 to 300,000 is not redeemed at maturity, it will be redeemed within the next four years; if the principal amount is above 300,000 and institutional investors do not redeem at maturity, it will be redeemed within the next five years.”
Regarding Evergrande’s employees’ strike to defend their rights, Ms. Zhang said: “You can’t do it anymore. You want you to pit your relatives, friends, and customers, and all your own savings are in it. You want me to work for you. You may not be able to get the money after doing the work. Who would like it? They said that you don’t need the money you make at Evergrande. You only need to return my principal and my client’s principal to us, otherwise it’s really impossible. Being a human being, they are the equivalent of doing pyramid schemes. If you lied to familiar people, how can you survive? People really can’t live anymore.”
Under threat, Ms. Zhang’s husband bought the lowest quota of 100,000 yuan. She said: “He (sir) is in a very abnormal mood now, and the whole person is very broken, and then he dare not tell his family, and occasionally say something to me calmly, saying,’It’s okay, I can bear the pressure alone. You don’t have to worry’, but it makes me feel terrible to be calm.”
Investors questioned Evergrande executives’ early payment and call for continued rights protection
Ms. Zhang revealed that there have been branch executives running away. “He must have got the money before he ran. We now suspect that the leader ran ahead of time. The leader should have got the money. Then we (the grassroots employees) There is no way.”
An employee in the WeChat group of “Hengda Wealth Marketing” said: “Why are there constantly news that the company leaders are paying in advance? Wouldn’t the high-level core members send messages and are secretly protecting their own funds?”
Another employee said: “At least return the customer’s principal to others!!! Even if the commercial ticket is not redeemed or the parking space is not returned, it is different from our wealth. Wealth products will definitely be paid on schedule. Why stop redemption now? Where does the money invested by customers go?” “The funds of good friends, neighbors, relatives, and funds of strangers who trust us are all people’s coffins.”
An Evergrande employee named “Mars Netizen” left a message on the NetEase website: “Unexpectedly, the last line of defense of Evergrande Group-Evergrande Wealth has collapsed. It is no longer possible to redeem investors’ money as scheduled, and the interest is over. Now the principal is hopeless. What’s even more is the leaders, they have long been informed that the financial management of their own investment came out two or three months earlier, and it also made our employees frantically engage in activities to sell financial management, and pit so many customers. .”
He said: “Most of the employees have also bought Evergrande’s financial management. On the one hand, their life’s hard-earned money is in it. On the other hand, they have to endure tremendous internal suffering and guilt. They maintain stability…Many customers are owners (of Evergrande Real Estate and Evergrande Real Estate), and many of them are elderly people…”
Guangzhou Ms. Wang, who invested 2.2 million in Evergrande Wealth, told The Epoch Times reporter on the 10th that a friend introduced her to invest in Evergrande Wealth. The 2.2 million was her business money. On the morning of the 10th, she called the wealth manager and asked about her upcoming The other party’s attitude changed drastically on the issue of redemption of investments due in November this year.
She said: “Before (the financial manager) was very complimented to you, but now she refuses me, saying that I can’t get (paid) this year. I was introduced by a friend before, but I didn’t expect this to be the case now. I think everyone is right now. To hug each other.”
Ms. Zhang is worried that once Evergrande goes bankrupt, all the money of the people and the business bills of small companies will be lost.
Evergrande Group disclosed earlier this month that its total liabilities rose to 1.97 trillion yuan, close to a record high. International rating agencies Moody’s, Fitch, and international giant Goldman Sachs have successively downgraded Evergrande’s rating.
Bloomberg News recently quoted an analysis as saying that Evergrande Group is one of the largest private companies in the mainland, and if it goes bankrupt, it will have an impact on the mainland’s economy.
Editor in charge: Ye Ziming #
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