Published On Premiered Sep 21, 2021
In an interview with local media, an Evergrande financial adviser said the products were a type of “supply chain finance”. While the money from retail investors may in years past have gone to its suppliers, the Evergrande executives in Shenzhen receiving retail investors said this was no longer the case.
One of the executives of Evergrande’s wealth management division said Hubei Gangdun was just a shell company. “Proceeds from the Wealth Management Products have been used to bridge various funding gaps faced by the parent company,” the executive said. “There is no need to thoroughly examine where the money actually went.
“Some WMP proceeds were used to repay previous products but sales plummeted, making it difficult for the business model to continue,” he admitted. - This is essentially the definition of a Ponzi Scheme.
Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC
Patreon Page: / patrickboyleonfinance
Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: / patrickeboyle
Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlD...
Apple: https://podcasts.apple.com/us/podcast...
Google Podcasts: https://tinyurl.com/62862nve
Join this channel to support making this content:
/ @pboyle