On March 31, 2024, a worker rode past the Vanke residential building under construction in Hangzhou, Zhejiang Province. (STR/AFP via Getty Images)
[The Epoch Times, July 5, 2024](Comprehensive report by Yi Fan, reporter of the Epoch Times Special Topics Department) “Pengding Chuangying,” a financial information service company located in Shenzhen, China, has experienced overdue payments on some of its products, and investors have been involved in various There are few Vanke employees, and the company’s largest shareholder is also a subsidiary of Vanke. As China’s real estate giant, Vanke has received frequent bad news this year.
On July 1, Shenzhen Pengding Chuangying Financial Information Services Co., Ltd. (referred to as Pengding Chuangying) issued a statement stating that the company provides services for multi-phase equity income investment products. Due to market factors, the invested projects cannot go as planned. The realization of refunds has resulted in delayed redemption of some products.
Pengding Chuangying also said that the company is making every effort to formulate special plans with relevant parties to promote the raising of funds and ensure the interests of customers, adding that the current situation is controllable.
It is reported that the redemption crisis of “Shenzhen Pengjinsuo Internet Financial Services Co., Ltd.” (referred to as Pengjinsuo), a wholly-owned subsidiary of Pengding Chuangying, began to appear from March to May this year, and many investors purchased products The funds have not been paid since maturity, and many of the investors are internal employees of Vanke.
On July 2, it was revealed that Pengjin’s targeted financing products were mainly purchased by Vanke employees. The amount of employee investment ranges from three to four million (approximately US$41,000 to US$55,000) to as high as four to five million (approximately US$550,000 to US$690,000), and has been overdue since March. Only a small part of the products before May have been redeemed, and none of the products following May have been redeemed.
Another Vanke employee posted on social media on June 30 that the payment of related financial products he purchased was delayed. One of the products had a term of 360 days and an annualized rate of return of 5.2%, which expired on April 7.
Another employee who has worked for Vanke for many years disclosed to the media that since March, more than a dozen products of Pengjin Institute have gone viral, involving an amount of regarding 7.8 billion (approximately 96.3 million to 110 million US dollars), but it has never taken the initiative. informed.
According to investors, Pengjin’s wealth management products are equity income-type directional financing products. They were previously recommended internally by Vanke and were purchased voluntarily by employees. There are no mandatory requirements for Vanke headquarters or regional companies. The deferred payment of Pengjin’s products this time is non-standard debt and does not involve Vanke.
For investors, this equity income product is neither a trust nor a private equity fund, has no third-party custody, and has no underlying mortgage product. Internal employees invest based on their trust in the fundamentals of the platform and do not know the specific investment direction. Once it explodes, the risk is huge.
Pengding Chuangying was established in June 2014, during the hottest period of Internet finance, and had attracted 22 listed companies to participate in the company.
Pengding Chuangying has a close relationship with Vanke. In August 2016, Pengding Chuangying received a strategic investment of 300 million yuan (approximately US$41.3 million) from Vanke, which was its largest financing. According to information from the enterprise inquiry platform Qichacha, the largest shareholder of Pengding Chuangying is Shenzhen Vanke Financial Consulting Co., Ltd., a subsidiary of Vanke Group, with a shareholding ratio of up to 20%. Vanke Finance is 95% owned by Vanke Enterprise Co., Ltd.
Pengjin Institute, a wholly-owned subsidiary of Pengding Chuangying, is an Internet financial platform. Pengjin Institute claims that the company is committed to guiding private funds to support the development of the real economy, broadening financing channels for small and micro enterprises, helping small and micro enterprises solve financing difficulties, and at the same time providing investors with safe investment returns. In June 2017, on the third anniversary of its establishment, Pengjin said that as of March of that year, its transaction volume had exceeded 20 billion yuan (approximately US$2.75 billion).
According to information from Tianyancha, Guo Changyu, the beneficiary of Pengjin, once served as a director of Shenyang Vanke Yongda Real Estate. The company has been cancelled, but Guo Changyu is still a member of Vanke Group.
In addition, among the overdue products of Pengjin is a “new equity income rights product”. The shareholders of its issuer “Huicheng Haotao” are two natural persons – Zhang Liling and Luo Ming, both of whom serve as directors of Vanke’s companies. Position.
Therefore, the market questioned that Vanke used Pengjin Exchange to raise funds in disguised form. This kind of doubt is not new but has existed for many years.
Vanke Group did not promptly respond to The Epoch Times’ request for comment.
Vanke has been in constant negative news this year
Vanke is a Fortune 500 company and one of the largest real estate developers in China and even the world. Vanke was originally a private enterprise, but Shenzhen Metro, a Chinese state-owned enterprise, is currently an important shareholder of Vanke, so Vanke has a Chinese state-owned background. Due to various factors such as the continued sluggishness of China’s real estate market and the tightening of financing environment, Vanke has been exposed to a series of negative news and been involved in public opinion storms since this year.
On March 11 this year, rating company Moody’s downgraded Vanke’s corporate rating to junk status and warned of possible further downgrades. Moody’s said in a statement that it had withdrawn Vanke’s Baa3 issuer rating and assigned it a Ba1 corporate rating. All of Vanke’s ratings were included in the review list for downgrade. Baa3 is the lowest rating for investment grade, and below Ba1 is non-investment grade, commonly known as junk level. (Further reading:Why didn’t the CCP save Evergrande and Vanke? Expert analysis）
Vanke’s profits nearly halved last year. The annual report released on March 28 showed that in 2023, Vanke achieved sales of 376.12 billion yuan (approximately US$51.7 billion), a year-on-year decrease of 9.8%; operating income of 465.74 billion yuan (approximately US$64 billion), a year-on-year decrease of 7.6%; attribution Net profit for shareholders of listed companies was 12.16 billion yuan (approximately US$1.67 billion), a year-on-year decrease of 46.4%.
In the first quarter of this year, Vanke’s profits fell further and turned from a profit to a loss. The first quarter report shows that Vanke’s operating income was 61.594 billion yuan (approximately US$8.5 billion), a year-on-year decrease of 10.05%; the net loss attributable to shareholders of the listed company was 362 million yuan (approximately US$49.8 million), turning from profit to loss; attributable to the listed company Shareholders’ net loss following deducting non-recurring gains and losses was 1.675 billion yuan (approximately US$230 million), turning from profit to loss.
On April 14, Vanke’s management admitted that the company had encountered periodic operating difficulties and that its liquidity was under short-term pressure. It also claimed that it had formulated a package of plans to stabilize operations and reduce liabilities, which might properly resolve these pressures and would reduce interest payments in the next two years. Debt exceeds 100 billion yuan (approximately US$13.8 billion) to ensure the company’s safety.
On the same day, Vanke also responded to rumors such as “Vanke’s management was subject to border control” and “Vanke’s Jinan general manager was taken away by the police.” Regarding previously reported issues of “misappropriation of funds, granting loan sharks, tax evasion, and money laundering,” Vanke stated that the relevant cases have entered the trial stage.
Affected by a series of negative news, Vanke’s stock trend has been ups and downs this year. Vanke’s A-share stock price hit a ten-year low in April. The closing price on July 4 was 6.94 yuan (approximately US$0.95), which was regarding 80% lower than the high in 2021.
Vanke has long been seen as a bellwether for large developers with close ties to the Chinese government, and the turmoil at Vanke might further shake confidence in China’s real estate industry. Although the CCP failed to save private enterprises such as Evergrande and Country Garden, it did give Vanke a helping hand. On May 23, Vanke signed an agreement with leading financial institutions such as China Merchants Bank and obtained a syndicated loan of 20 billion yuan (approximately US$2.75 billion). Its cash flow crisis was temporarily relieved.
Editor in charge: Lian Shuhua#
Recommended reading:
Vanke’s Financial Troubles & Delayed Payments: A Sign of Deeper Problems in China’s Real Estate Market?
**[The Epoch Times, July 5, 2024](Comprehensive report by Yi Fan, reporter of the Epoch Times Special Topics Department)** “Pengding Chuangying”, a financial information service company located in Shenzhen, China, has experienced overdue payments on some of its products, and investors have been involved in various There are few Vanke employees, and the company’s largest shareholder is also a subsidiary of Vanke. As China’s real estate giant, Vanke has received frequent bad news this year.
On July 1, Shenzhen Pengding Chuangying Financial Information Services Co., Ltd. (referred to as Pengding Chuangying) issued a statement stating that the company provides services for multi-phase equity income investment products. Due to market factors, the invested projects cannot go as planned. The realization of refunds has resulted in delayed redemption of some products.
Pengding Chuangying also said that the company is making every effort to formulate special plans with relevant parties to promote the raising of funds and ensure the interests of customers, adding that the current situation is controllable.
It is reported that the redemption crisis of “Shenzhen Pengjinsuo Internet Financial Services Co., Ltd.” (referred to as Pengjinsuo), a wholly-owned subsidiary of Pengding Chuangying, began to appear from March to May this year, and many investors purchased products The funds have not been paid since maturity, and many of the investors are internal employees of Vanke.
On July 2, it was revealed that Pengjin’s targeted financing products were mainly purchased by Vanke employees. The amount of employee investment ranges from three to four million (approximately US$41,000 to US$55,000) to as high as four to five million (approximately US$550,000 to US$690,000), and has been overdue since March. Only a small part of the products before May have been redeemed, and none of the products following May have been redeemed.
Another Vanke employee posted on social media on June 30 that the payment of related financial products he purchased was delayed. One of the products had a term of 360 days and an annualized rate of return of 5.2%, which expired on April 7.
Another employee who has worked for Vanke for many years disclosed to the media that since March, more than a dozen products of Pengjin Institute have gone viral, involving an amount of regarding 7.8 billion (approximately 96.3 million to 110 million US dollars), but it has never taken the initiative. informed.
According to investors, Pengjin’s wealth management products are equity income-type directional financing products. They were previously recommended internally by Vanke and were purchased voluntarily by employees. There are no mandatory requirements for Vanke headquarters or regional companies. The deferred payment of Pengjin’s products this time is non-standard debt and does not involve Vanke.
For investors, this equity income product is neither a trust nor a private equity fund, has no third-party custody, and has no underlying mortgage product. Internal employees invest based on their trust in the fundamentals of the platform and do not know the specific investment direction. Once it explodes, the risk is huge.
The Connection Between Pengding Chuangying & Vanke
Pengding Chuangying was established in June 2014, during the hottest period of Internet finance, and had attracted 22 listed companies to participate in the company.
Pengding Chuangying has a close relationship with Vanke. In August 2016, Pengding Chuangying received a strategic investment of 300 million yuan (approximately US$41.3 million) from Vanke, which was its largest financing. According to information from the enterprise inquiry platform Qichacha, the largest shareholder of Pengding Chuangying is Shenzhen Vanke Financial Consulting Co., Ltd., a subsidiary of Vanke Group, with a shareholding ratio of up to 20%. Vanke Finance is 95% owned by Vanke Enterprise Co., Ltd.
Pengjin Institute, a wholly-owned subsidiary of Pengding Chuangying, is an Internet financial platform. Pengjin Institute claims that the company is committed to guiding private funds to support the development of the real economy, broadening financing channels for small and micro enterprises, helping small and micro enterprises solve financing difficulties, and at the same time providing investors with safe investment returns. In June 2017, on the third anniversary of its establishment, Pengjin said that as of March of that year, its transaction volume had exceeded 20 billion yuan (approximately US$2.75 billion).
According to information from Tianyancha, Guo Changyu, the beneficiary of Pengjin, once served as a director of Shenyang Vanke Yongda Real Estate. The company has been cancelled, but Guo Changyu is still a member of Vanke Group.
In addition, among the overdue products of Pengjin is a “new equity income rights product”. The shareholders of its issuer “Huicheng Haotao” are two natural persons – Zhang Liling and Luo Ming, both of whom serve as directors of Vanke’s companies. Position.
Therefore, the market questioned that Vanke used Pengjin Exchange to raise funds in disguised form. This kind of doubt is not new but has existed for many years.
Vanke Group did not promptly respond to The Epoch Times’ request for comment.
Vanke has been in constant negative news this year
Vanke is a Fortune 500 company and one of the largest real estate developers in China and even the world. Vanke was originally a private enterprise, but Shenzhen Metro, a Chinese state-owned enterprise, is currently an important shareholder of Vanke, so Vanke has a Chinese state-owned background. Due to various factors such as the continued sluggishness of China’s real estate market and the tightening of financing environment, Vanke has been exposed to a series of negative news and been involved in public opinion storms since this year.
On March 11 this year, rating company Moody’s downgraded Vanke’s corporate rating to junk status and warned of possible further downgrades. Moody’s said in a statement that it had withdrawn Vanke’s Baa3 issuer rating and assigned it a Ba1 corporate rating. All of Vanke’s ratings were included in the review list for downgrade. Baa3 is the lowest rating for investment grade, and below Ba1 is non-investment grade, commonly known as junk level. (Further reading:Why didn’t the CCP save Evergrande and Vanke? Expert analysis）
Financial Performance Plummets
Vanke’s profits nearly halved last year. The annual report released on March 28 showed that in 2023, Vanke achieved sales of 376.12 billion yuan (approximately US$51.7 billion), a year-on-year decrease of 9.8%; operating income of 465.74 billion yuan (approximately US$64 billion), a year-on-year decrease of 7.6%; attribution Net profit for shareholders of listed companies was 12.16 billion yuan (approximately US$1.67 billion), a year-on-year decrease of 46.4%.
In the first quarter of this year, Vanke’s profits fell further and turned from a profit to a loss. The first quarter report shows that Vanke’s operating income was 61.594 billion yuan (approximately US$8.5 billion), a year-on-year decrease of 10.05%; the net loss attributable to shareholders of the listed company was 362 million yuan (approximately US$49.8 million), turning from profit to loss; attributable to the listed company Shareholders’ net loss following deducting non-recurring gains and losses was 1.675 billion yuan (approximately US$230 million), turning from profit to loss.
On April 14, Vanke’s management admitted that the company had encountered periodic operating difficulties and that its liquidity was under short-term pressure. It also claimed that it had formulated a package of plans to stabilize operations and reduce liabilities, which might properly resolve these pressures and would reduce interest payments in the next two years. Debt exceeds 100 billion yuan (approximately US$13.8 billion) to ensure the company’s safety.
On the same day, Vanke also responded to rumors such as “Vanke’s management was subject to border control” and “Vanke’s Jinan general manager was taken away by the police.” Regarding previously reported issues of “misappropriation of funds, granting loan sharks, tax evasion, and money laundering,” Vanke stated that the relevant cases have entered the trial stage.
Affected by a series of negative news, Vanke’s stock trend has been ups and downs this year. Vanke’s A-share stock price hit a ten-year low in April. The closing price on July 4 was 6.94 yuan (approximately US$0.95), which was regarding 80% lower than the high in 2021.
Vanke has long been seen as a bellwether for large developers with close ties to the Chinese government, and the turmoil at Vanke might further shake confidence in China’s real estate industry. Although the CCP failed to save private enterprises such as Evergrande and Country Garden, it did give Vanke a helping hand. On May 23, Vanke signed an agreement with leading financial institutions such as China Merchants Bank and obtained a syndicated loan of 20 billion yuan (approximately US$2.75 billion). Its cash flow crisis was temporarily relieved.
Editor in charge: Lian Shuhua#
Recommended reading: