Hywin Fortune is in crisis because of real estate

Mondo Finance Updated on 2024-01-31

Under the predicament of real estate enterprises, not only ordinary home buyers are trapped in it, but also some wealthy people are difficult to be alone, especially the high-yield financial management that made steady profits and did not lose money before, and now there are frequent thunderstorms.

In the last few days of 2023, Hywin Wealth officially announced that its wealth management products had to be delayed due to financial problems. Haiyin Wealth is known as the third largest wealth management institution in China, and the main funds are the wealthy people in China. The threshold of Silversea Wealth's wealth management products is not low, and they are basically millions of investments, so the individual amount of investors is very large. According to the data released a year ago, the total amount of Haiyin Wealth wealth management products under management is 79.8 billion yuan, and the active customers are about 470,000 people, with an investment of about 2 million per capita. The problem of Haiyin's wealth is also planted in real estate projects. According to the data released in 2020, there are 456 total wealth management products, of which about 316 involve real estate projects, accounting for nearly 70%. These investment projects include a large number of real estate companies that have defaulted on their debts, such as Junfa, Evergrande, Sunac and other real estate companies. With the default of the debts of these real estate companies, problems gradually arise in the development and sales of the project, and the delay is fed back to the redemption of relevant wealth management products. As early as the second half of 2023, the redemption of Silversea Wealth's products began to be delayed. Later, the T+3 mechanism was directly launched, and it would not arrive until the third day. After December, the problem worsened, and the products that were originally paid on December 15 and 25 were not paid for a long time. Yinhai claimed that there was a delay in the project, and then the company would sort out the asset situation and give everyone an explanation as soon as possible.

The real estate projects invested in this kind of wealth management products generally have many credit enhancement measures, and even if the real estate enterprise defaults on its debts and the project falls into debt disputes, it also has the priority to dispose of. As long as the project can continue to be developed and sold, it is basically guaranteed to get the money back. But the key problem now is that many projects are not open for a month in the current sales environment, and how can they have the cash to repay their debts. Of course, you can also dispose of assets directly, but it is the next policy to sell the project as a whole at a discount, and you can't get the full amount of the principal, and you won't lose anything.

The problem of Yinhai Wealth is not only this, but it has also been pointed out that it is suspected of self-financing, and now it is almost unbearable.

I have to say that many wealthy people have lived a good life for a long time before. Before 2021, whether it was a trust plan or a wealth management company, these investors were able to get a return on investment of 8% or even more than 10% by issuing products to invest in real estate projects. In the past ten years, there have been no problems in these financial management, and even a few problems have been resolved by selling projects, which is basically risk-free and high-yield financial management. Now that the real estate industry is like this, these rich people have also become the target of harvesting.

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