Business & Economy

Evergrande fines senior managers who rescued investments ahead of time

Shanghai, China, Oct 9 (EFE).- Indebted Chinese real estate giant Evergrande announced Saturday it had “sanctioned” six senior executives who had rescued their investments in the company’s wealth management products before the agreed deadline.

In a brief statement published on its website, Evergrande said its six executives have already returned to investment accounts all the funds they withdrew.

“The company has demanded responsibility from the six executives and has sanctioned them,” the document read.

On Sep. 18, Evergrande announced it required the six executives to return the funds, although at no time has it disclosed their identities, the products in which they had invested or the amounts withdrawn before the deadline.

The conglomerate said it “attached great importance” to these events, adding that it would impose “serious sanctions” on managers.

The group said it “requires” its investment management subsidiary to “strictly follow published (investment) swap plans” to guarantee “justice, impartiality and fair treatment.”

In recent weeks, Evergrande has placed itself in the crosshairs of investors and international markets due to its apparent liquidity problems to face a total liability of more than $ 300,000 million.

Uncertainty about the company’s future increased especially after the deadlines to pay interest on two packages of offshore bonds expired, although it has a 30-day extension before it is officially considered to have defaulted.

Evergrande’s shares listed on the Hong Kong Stock Exchange have fallen almost 80 percent since the beginning of the year.

On Monday, the group’s shares froze their trading in Hong Kong due to the possible plans, revealed by the official Chinese press, of Cantonese developer Hopson Development to buy 51 percent of the real estate management subsidiary of Evergrande for about $ 5,1 billion. This has not yet been officially confirmed by any of the parties allegedly involved in the operation. EFE


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