Crisis-struck Chinese developer Evergrande has reportedly punished six executives for returning funds from early redemptions of some investment products.
The six managers of the Evergrande Wealth made early redemptions of 12 investment products between 1 May 2021 and 7 September 2021, Reuters reported citing a statement by Evergrande.
Go deeper with GlobalData
The identity of the executives as well as the nature of the offerings were not divulged by the company.
According to the company, the funds were returned in full last week.
The executives have been punished and held accountable for their actions, it stated.
Evergrande, which is facing a liquidity crisis with over $300bn in liabilities, is on the verge of imminent default after missing a number of repayments.
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By GlobalDataLast month, Reuters reported that Evergrande Wealth was being investigated by the Shenzhen government.
The investigation was launched by the authorities after the unit missed a payment on wealth management products (WMPs).
Evergrande is said to have sold WMPs worth over $15.47bn (CNY 100bn) in the last five years.
The investors claim that some CNY40bn of the investments are currently outstanding.
Other developments related to Evergrande crisis
Last month, it was reported that Marathon Asset Management had purchased debt issued by Evergrande.
Marathon co-founder and CEO Bruce Richards told Reuters that the firm intends to accumulate more of Evergrande’s debt at the current low prices.
The same month, Financial Times reported that Credit Suisse scrapped its complete exposure to the debt-ridden Chinese developer Evergrande late last year.
The Swiss investment giant was once a major underwriter of Evergrande bonds, arranging $4.6bn of dollar bonds for the Chinese firm in the last decade.
According to the report, it did not underwrite any debt in the last two years due to concerns over the developer’s financials.
Earlier, Credit Suisse told its investors that it is not an existing lender to Evergrande and has no direct lending exposure to the developer.
