Outside the offices of the Chinese Evergrande Group in Guangzhou, investors in its financial products are protesting today, many of whom are worried that their money will be sacrificed in order to keep the real estate development company’s projects viable.
About 100 people shouted “Evergrande, give us back our money”, repeating the slogan of the company’s disgruntled investors and suppliers in the autumn, when its deteriorating financial situation became apparent.
Meanwhile, Evergrande’s stock rose today as it resumed trading on the Hong Kong Stock Exchange after yesterday’s suspension of pending “inside information”.
The company announced that its sales for 2021 decreased by 39% compared to the previous year to $ 69.5 billion. She also confirmed that she had been ordered to demolish 39 buildings on Hainan Island. “The company will actively communicate with the authorities, according to the guidance of the decision letter, and will resolve the matter in an appropriate manner,” Evergrande said, informing the Hong Kong Stock Exchange.
In its announcement, the company also referred to concerns about its financial position, noting: “Regarding the current liquidity situation, the company will continue to actively communicate with creditors, seek to address risks and safeguard legal rights and interests. on all sides “.
On Friday, the Chinese company announced the limitation of its plans to repay investors in its products, announcing that each investor can expect 8,000 yuan ($ 1,256) per month for a capital payment for three months, starting in January, regardless from the time of maturation of the investment.
Evergrande, which owes more than $ 300 billion, had previously agreed to repay 10% at the end of the month, without specifying any amounts. The change of attitude caused investors to fear that they would not get their money back. “I think there is no hope, and I’m scared, but if we do not fight for our rights it will be worse,” said a retiree who was among the protesters, noting that she had invested one million yuan in Evergrande’s wealth management products.
“The economy is not good at the moment, they are ordinary people and they need this money for their children to support their parents,” he added.
Source: AMPE
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Source From: Capital
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