Guangzhou’s most significant private enterprise, Cedar Holdings, defaults on wealth management products.

According to Caixin, Cedar Holdings could not repay its financial products obligation. In January 2022, Cedar Holdings’ share of financial products is about $3.15 billion, with 8,000 investors. Cedar Holdings apologized to investors about the incident on Jan. 30.

Cedar Holdings Chairman Zhang Jin and senior executives from the company’s headquarters and divisions met on Feb. 9. After learning the news, hundreds of investors raced to Cedar Holdings’ headquarters. They formed three or five-person groups and blocked exits to prevent Zhang Jin from leaving his office before making any commitment. Zhang Jin had agreed to use some of his assets as a credit enhancement to help him pay off the debt. Several parcels of land in Zhongshan, Cedar’s Kaiyuan Securities shares, and another $310 million in accounts receivable from state-owned firms are among the assets. In the 2021 New Fortune 500 Rich List, Zhang Jin is placed 87th in mainland China, with a net worth of $7.05 billion.

A financial manager said that Cedar Holdings noted that the value of the assets mentioned above is enough to cover the total amount of about $3.15 billion of financial products. But the investors still have doubts about this; they hope that the local authorities can set up a working group in Cedar Holdings to urge the company to repay the debt.

Cedar Holdings was founded in 1997 with global headquarters in Guangzhou, with two listed companies, Qixiangtengda and Sinur. It is a private enterprise covering five major industrial sectors: commodity supply chain, chemical new materials, culture, tourism and recreation, wise community services, and social welfare services. It is ranked 359th in the Fortune 500 in 2021, with $36.71 billion, and has been on the list for four consecutive years.

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