Source | WEMONEY
Author | Lin Xiaolin
On January 7, 2020, the Office of the Leading Group for the Fighting and Disposal of Illegal Fund Raising in Yuhua District, Changsha City issued a risk warning saying that Evergrande Wealth (formerly Evergrande Financial Services), a subsidiary of Evergrande Group, was suspected of illegal finance. Big Finance once again returned to the public eye.
In March 2016, Evergrande Financial entered the Internet finance with the P2P platform "Evergrande Financial Services". At the beginning of 2018, Evergrande Financial Services began to stop issuing regular online products, and its P2P business gradually shut down. In May 2019, Evergrande Financial Services changed its name to Evergrande Wealth, and it quietly disappeared.
However, Evergrande Wealth Business did not stop there, but quietly transferred its online business to offline.
High-end financial partners are suppliers of Evergrande
An average of 20 million products in five days
Evergrande Wealth's APP currently has two types of products that can be purchased, one is a select fund, and the other is high-end wealth management. The recommended funds are all public fund products, which are in cooperation with Yingmi Fund, which is a third-party fund sales agency approved by the China Securities Regulatory Commission.
"Yuhua District Incident" is the first time Evergrande Wealth High-end Financial Management has been known to outsiders. How high is the so-called high-end financial management threshold?
These high-end wealth management products are not displayed on the APP, and only need to be seen through the Evergrande Investment Advisor. The WEMONEY laboratory understands that Evergrande ’s high-end financial management currently displays 7 products with a duration of 365 days. The starting investment amount ranges from 100,000 yuan to 10 million yuan (inclusive) and above, and the interest rate ranges from 7.5% to 9.5% between.
Evergrande's investment consultant Ms. Li introduced to the WEMONEY laboratory that currently Evergrande's main products are more than 300,000 yuan, but less than 300,000. The amount of each project is capped at 20 million, and it is fully sold within an average of 5 days, and more than one project is on sale at the same time.
In 2016, Evergrande ’s P2P products were dominated by medium and long-term bids, with thresholds of 10,000 yuan, 50,000 yuan, and even as many as 500,000 bids, with a revenue range of 4.7% to 12.80%.
These products are directed entrusted investments, but in the real P2P platform logic, the platform is only a matchmaker, and the borrower should directly correspond to the lender. Targeted entrusted investment is similar to an asset management plan, a wealth management service product developed by securities companies and fund subsidiaries for high-end customers. The P2P platform has undergone some innovations to allow more investors to experience the pleasure of "private placement". However, such innovations are suspected of violating regulations and are likely to trigger policy risks. According to the report of Zero One Finance, Evergrande Financial Services has also raised questions from Rongzi Insurance and the provision of loans to untrustworthy companies, and has been on the brink of supervision.
Comparing the two products, there are similarities. Ms. Li also said that high-end financial management is indeed moving the original P2P online business to offline collection.
So, has the self-financed self-guaranteed online business that has been questioned still have this problem after it is transferred to offline?
There are less than ten employees in the cooperative company filed by Anjin
Can products with annual sales of more than one billion be redeemed in full?
When asked by the WEMONEY laboratory, will there be a situation where the payment cannot be made as scheduled? Ms. Li said that this project started in 2015 and is currently 100% paid. And once the situation arises, Evergrande Wealth will "finance the bottom", make up the difference, and redeem the principal and interest to investors. Ms. Li also revealed that Evergrande Wealth Product Asset Target Enterprise is Evergrande ’s supplier, so it is guaranteed.
After the introduction of the new asset management regulations in 2018, it has been made clear that the asset management business must not promise to guarantee the capital and income. Evergrande ’s promise of 100% redemption has become the main selling point advertised by Evergrande Wealth Investment Advisors, which clearly violates regulatory requirements.
The contract presented by Ms. Li shows that the company filing this project is Shenzhen Chaobo Industrial Co., Ltd. (hereinafter referred to as "Shenzhen Chaobo").
The WEMONEY laboratory found from the China Import and Export Enterprise Directory and Accreditation website that the company has fewer than 10 employees. Since claiming to be a supplier of Evergrande, why are there so few employees? The WEMONEY laboratory found the company's landline phone from the national enterprise credit information publicity system, and it was not connected as of press time.
According to the contract, Shenzhen Chaobo filed with the Anhui Financial Asset Exchange (hereinafter referred to as "Anjin"), and the WEMONEY laboratory called Anjin, and the customer service of the other party said that the project did exist, but could not obtain product information.
Does filing mean compliance and security?
An industry executive said that in fact, the gold exchange is just a channel. Some companies find a few companies to package and divide assets, and then after the gold exchange is on file, they will find corresponding investors to buy. Most of the companies are shell companies.
It seems that Evergrande Wealth's offline high-end wealth management is compliant on the surface, but there are many doubts behind it. It is not known whether the funds are transfusions for Evergrande Real Estate or capital flows into Evergrande supplier companies.
The WEMONEY laboratory joins the WeChat group of Evergrande's high-end financial management. There will be people in the group who instigate and pull people, and many investors are transferred from online to offline, which is the "iron powder" of Evergrande Wealth.
In addition, the WEMONEY laboratory also found that Evergrande investment consultants use friends channels, Tieba, Zhihu and other channels to vigorously promote the business to attract new users, but it is doubtful whether this kind of promotion business is regular.
