SHANGHAI: China’s Hywin Wealth Management says it is reviewing its outstanding business and will provide resolution plans to investors by the end of the month, following missed payments on some investment products amid Chinese property sector woes.
Hywin, whose products are primarily invested in real estate, said last week it had been unable to promptly fulfill client redemption requests.
In a statement, Hywin said without elaborating that “according to the latest regulatory policies and industry trends, Hywin has decided to withdraw”.
It did not immediately respond to a request for comment.
“Recently, impacted by the economic downturn, payments of some projects have been delayed, causing inconvenience to investors,” Hywin said in the Sunday statement. “We sincerely apologise for this.
“Hywin has set up a special task force to actively work with relevant parties on formulating plans to resolve issues,” the statement added.
Hywin is a small player in wealth management with disclosed total assets of 2.37bil yuan (US$328mil) as of the end of June.
However, its troubles illustrate just how a faltering property sector is causing strain throughout the Chinese financial system. — Reuters
