China Evergrande Group’s money management arm said it couldn’t make payments for investment products this month due to a liquidity crunch.
(Bloomberg) — China Evergrande Group’s money management arm said it couldn’t make payments for investment products this month due to a liquidity crunch.
The developer said that it’s been disposing assets to raise money for the payments, but due to setbacks it didn’t receive proceeds and is unable to make the payments, the company said on its official WeChat account on Thursday.
Evergrande, the poster child for China’s property crisis, is among a number of real estate firms that defaulted amid a housing meltdown over the last few years. Its protracted process to finalize one of the country’s biggest restructurings ever remains in limbo as key votes on its offshore-debt restructuring plan was delayed again this week.
The company missed payments on 40 billion yuan ($5.6 billion) of wealth management products in 2021, sparking nationwide demonstrations and putting pressure on Beijing to find a solution to avoid further unrest. At the time, more than 70,000 people bought the products, including many Evergrande employees, as the cash-strapped developer tapped them for funding.
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