Evergrande denies rumours of bankruptcy and reorganisation after weekend of protests at offices across China

Evergrande has encountered unprecedented difficulties, but it is going all out to resume production and deliver buildings, company says

Its chairman wants the firm to repay all of its matured wealth management products as soon as possible, sources say

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‘I can be broke, but investors of Evergrande Wealth Management cannot be broke,’ Hui Ka-yan, Evergrande’s chairman, is said to have told an internal meeting on Friday. Photo: Reuters

Published: 10:30pm, 13 Sep 2021Updated: 11:55am, 15 Sep 2021

Heavily indebted developer China Evergrande Group denied rumours of bankruptcy and reorganisation late on Monday, after rallies were staged at its offices over the weekend by investors that hold its wealth management products.

“The company has indeed encountered unprecedented difficulties, but we are assuming corporate responsibility and going all out to resume production and deliver buildings. We are doing everything possible to resume normal operations and fully protect the legitimate rights and interests of customers,” it said in a statement released late on Monday.

The developer continues to find itself in the eye of the storm, as its liabilities of 1.97 trillion yuan (US$305 billion) could pose a systemic risk to China’s financial system were it to fail. Videos of investors airing grievances at Evergrande’s offices in mainland China went viral on local social media over the weekend.

The company announced new payment plans for its wealth management product investors on Monday in response to the rallies, according to people familiar with the matter. These products, offered through its internet finance affiliate, Evergrande Wealth Management, are owned mostly by its own employees.

“I can be broke, but investors of Evergrande Wealth Management cannot be broke,” Hui Ka-yan, Evergrande’s chairman, said during an internal meeting on Friday, according to the sources. Hui said the firm would repay all of its matured wealth management products as soon as possible.

“The repayment must be settled fairly … We must make every attempt to repay our investors according to the plan,” he said.

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