‘Evergrande, return our money!’: Investors rally outside cash-strapped Chinese firm
Global News
Once China's top selling developer but now reeling under more than $300 billion in liabilities, Evergrande has announced a dial-back of plans to repay investors.
Investors in financial products issued by China Evergrande Group protested outside the cash-strapped company’s offices in Guangzhou on Tuesday, with many worried that their returns would be sacrificed to keep real estate projects afloat.
Members of the crowd of roughly 100 people shouted “Evergrande, return our money!”, reprising a chant used by disgruntled investors and suppliers last autumn as the deterioration in its financial position became apparent.
On Friday, Evergrande announced a dial-back of plans to repay investors in its wealth management products, announcing that each could expect 8,000 yuan (US$1,256) per month in principal payment for three months starting in January, irrespective of when their investment matures.
Once China’s top selling developer but now reeling under more than $300 billion in liabilities, Evergrande had previously agreed to repay 10% by the end of the month when the product matured, without specifying an amount.
The change sparked investor fear that they won’t get their money back.
“I think it’s hopeless, and I’m scared, but if we don’t fight for our rights, that’s worse,” said a retired woman surnamed Du who was among those outside Evergrande’s offices in the southern Chinese metropolis and said she had invested one million yuan in Evergrande wealth management products.
“The economy’s not good at the moment, these are ordinary people and they need this money for kids, for supporting their parents,” she said.
As of midday, about 60 of those protesting had been contained by security personnel.
