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Hengda Group, a Chinese conglomerate based in the real estate business, is on the verge of bankruptcy. It has been affected by the authorities' strong regulatory policies, and there is a prospect that it could have a shock to the Chinese economy as a whole.
This is Beijing Correspondent Ji-Sung Kim.
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Dozens of citizens gathered at the headquarters of Hengda Group in Shenzhen, Guangdong Province.
He protests harshly to give up the money he has invested.
[Hungda, please return the money, return the money.]
Investors who bought financial products sold by the Hengda Group but did not get their principal back, even produced a dizzying scene on the roof of a high-rise building.
[Investment Victim: Even after a year has passed, no one is involved. Even the government is not involved.]
Hengda Group, which started as a real estate development company, has established itself as one of the three largest real estate conglomerates in China through a development boom.
Since then, it has been expanding its octopus business to theme parks, tourism, and healthcare, following finance and electric vehicle businesses.
Four years ago, the group's chairman Xu Jain became the richest man in China.
However, state-owned banks began to collect loans as the authorities imposed regulations to stabilize the real estate market, and Hengda Group eventually fell into a serious liquidity crisis.
It is a shopping mall created by Hengda Group in downtown Beijing.
In this way, the shopping mall was empty to the extent that 'inquiry for rental' signs were attached to each store.
The prevailing view is that Hengda Group's debt will reach a whopping 353 trillion won and go bankrupt.
[Mila/AMCAP Analyst: Over the past few years, Chinese authorities have shown a willingness to reduce unsustainable debt.]
There are concerns that the collapse of the Hengda Group could have a huge impact on the Chinese economy as well as the real estate market.
(Video coverage: Choi Duk-hyun, video editing: Won-hee Won, video source: Weibo)