[Epoch Times September 12, 2021](The Epoch Times reporter Xiong Bin interviewed and reported) China‘s leading real estate company Evergrande Group has broken its capital chain and is currently in a debt crisis. On September 8, its wealth management product “Hengda Wealth” “Thunder, from the 10th, Evergrande companies across China and Shenzhen Evergrande headquarters have gathered a large number of victims to ask for money. Even Evergrande employees are also victims. They gathered to defend their rights and shouted “Repay employees’ hard-earned money.”
Several lenders and victims of “Hengda Wealth Management” told The Epoch Times that they could not accept the “repayment plan” proposed by Evergrande on the 10th, worrying that once the payment was delayed, their money would not be able to get back.
On September 11, hundreds of rights defenders gathered in the Shenzhen Civic Center. The live video showed that the authorities dispatched a large number of police officers and buses to wait for them. Some were arrested by the police into the bus, and several others were kneeling in front of the city hall and crying. Someone stopped the Evergrande leader’s car at the entrance of the headquarters building, crying excitedly: “The money is in the house, what should I do? Are they going to jump off the building? They don’t solve the problem.”
Victims across the country initiated rights defense to boycott Evergrande’s default
The day before, 12 business locations across the country, including Hubei, Anhui, Henan, Jiangxi, Hunan, Hebei, Shanxi, Sichuan, Shanghai, Chongqing, Guangzhou Evergrande Center, and Shenzhen Evergrande headquarters, gathered a large number of rights defenders, and there were still people late at night. Not willing to leave, many people slept on the floor.
The video shows that the public made their main demands to the Evergrande management, “Whether it is due or not due (Hengda wealth management products), we must request that the contract be suspended immediately, no interest is required, and the principal is taken back. . Second, Evergrande must give an acceptable time, such as the end of September and the end of October, saying that five or three years will definitely be unbearable.”
On the 10th, Evergrande’s legal representative, Du Liang, verbally put forward the “Hengda Wealth Management Product Redemption Plan”, saying: The principal is less than 100,000 to be redeemed; half of the principal of 100,000 is due to redeem, and the other half is redeemed one year later; the principal 100,000 to 300,000 will not be redeemed at maturity and will be redeemed within the next four years; those with a principal of more than 300,000 and institutional investors will not be redeemed at maturity and will be redeemed within the next five years. This statement caused public dissatisfaction.
The lender under the pseudonym Xiao Xu told The Epoch Times, “Now everyone is boycotting his payment collection plan. This plan is to drag everyone to death and eventually not give money. The purpose of defending rights is to resist the payment collection plan introduced by Evergrande. “
The lender, Mr. Chen, told The Epoch Times that he thinks the first item of this plan is pure nonsense. He said: “Because many financial products start at 100,000 yuan, there are no less than 100,000 yuan, and there are other payments below. The method shows how much money you invested. You will not get the money this year, and you will get the money next year at the earliest. Then, what will happen next year? Who knows?”
Mr. Chen said, “Hengda has so much property. If you sell it, the cash will come out. The most people buy this financial management. If this part is not given, then the society will not be stable. He should This part of the people will pay back their money first.”
Concerned about Evergrande’s uncertain prospects, all parties went to ask for money
The video shows that it is not only the victims of “Hengda Wealth” who are begging for money. Contractors and sellers of various projects of Evergrande Real Estate are also asking for wages. On September 6, Hubei Huangshi Evergrande Yujing Project defaulted on wages, and first-line sales Workers protested against the issue; on September 10, Evergrande employees held up placards in front of the building and shouted “Repay the employees’ hard-earned money.”
Xiao Zhang (pseudonym), the lender of “Hengda Wealth”, told The Epoch Times that market rumours that Evergrande may declare bankruptcy on the 20th, making him feel pessimistic about the future of Evergrande and have prepared for the worst.
Xiao Zhang said: “Everyone knows that this plan has been reported to the Shenzhen and Guangdong governments. Once the government agrees, the matter is fixed. What else is there? The worst is the weekend. 48 hours later, the Evergrande Center may Going to the building to empty, Monday passed by, and the entire Evergrande was gone on the 20th, so what do you expect to delay the payment.”
Evergrande’s wealth cannot be redeemed due to the expiration of various government departments
Evergrande Financial Wealth Management Company (“Hengda Wealth”) was established in 2015 and is headquartered in Shenzhen. According to the chat records from the WeChat group of Evergrande Fortune, some employees said that 99% of Evergrande employees have bought Evergrande Fortune products, “because they had tasks before, and colleagues bought them with loans.” On September 8th, “Hengda Wealth” expired wealth management products were not redeemed. On the 10th, a large number of employees gathered in the Shenzhen Evergrande headquarters to defend their rights.
Some victims called the China Banking and Insurance Regulatory Commission and other government departments, and the response they got was to shirk each other. Among them, the staff of the Shenzhen Financial Bureau responded, “We are not sure if Evergrande Wealth belongs to the Financial Bureau, the China Banking Regulatory Commission, or the People’s Bank of China. At present, it is not on our P2P list.”
On the 10th, reporters made numerous calls to Evergrande’s customer service number, but none of them could be connected.
Editor in charge: Sun Yun#