Hywin’s debacle underscores close links between China’s property and wealth management sectors

Hywin Wealth, a Shanghai-based wealth management company with ties to embattled property developer China Evergrande Group, said it would look into missed payments on its investment products, after talk of repayment difficulties sent shares of its Nasdaq-listed parent plunging to a third of its value over the past week.

Hywin Wealth, controlled by Nasdaq-listed Hywin Holdings, said in a statement on Sunday that its “projects were delayed due to a declining economy”, and that it had established a special investigation committee to “proactively coordinate relevant parties in planning solutions”.

A relatively small player in China’s US$3 trillion shadow banking industry, Hywin Holdings had 8.5 billion yuan (US$1.2 billion) in assets under management as of June 2023, according to a filing with the US Securities and Exchange Commission.

Founded in 2006, Hywin Wealth has over 2,500 employees and offers asset management and consulting services to over 146,000 high net worth individuals and institutions, according to the company’s website.

“In accordance with the most recent regulatory policy and industry guidance, Hywin Wealth has volunteered to withdraw and sort out our existing businesses,” the company said in the December 17 statement. “We will inform everyone about relevant solutions by the end of the month, and we hope people will refrain from believing in and spreading rumours.”

Hywin Wealth did not respond to the Post’s request for comment.