Evergrande Chairman Pledges Repayment of Wealth Products: RTHK

(Bloomberg) -- China Evergrande Group Chairman Hui Ka Yan said the company will ensure full and early repayment of all maturing wealth management products, Radio Television Hong Kong reported, citing a company press release. 

Hui was cited as saying that while Evergrande is now faced with unprecedented difficulties, its fundamentals haven’t changed. He also said that the strongest guarantee of repayment would come from efforts to resume work and production, deliver projects, conduct sales well and resume normal operations, the report added. 

The distressed developer’s complex web of obligations to banks, bondholders, suppliers and homeowners has become one of the biggest sources of financial risk in the world’s second-largest economy. Speculation over Evergrande’s fate has prompted dramatic swings in its bonds that has spilled over to other weaker-rated property firms. 

Evergrande released an interim repayment plan Thursday for matured wealth management products held by retail investors, according to a REDD report Friday. As part of the plan, retail investors holding more than 100,000 yuan ($15,518) of the products will have payments extended by two to four years and amortized, REDD reported.  

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