"Xiangyuan Group" financial products default, three affiliated companies respond urgently

China Fund News reporter Taylor

Hello everyone, the overdue incident involving “Xiangyuan” financial products continues to develop, and all three of its listed companies have issued urgent announcements to “cut ties.”

On the evening of December 7, Xiangyuan Culture and Tourism said in an announcement that media reports have appeared online claiming that the financial products, in which Xiangyuan Culture and Tourism’s indirectly controlling shareholder Xiangyuan Holdings and the company’s actual controller bear joint guarantee liability, have some overdue redemption and that the reports have drawn investor attention.

The company verified the relevant matters with Xiangyuan Holdings and the company’s actual controller and conducted a self-check. To prevent inaccurate information from misleading the market and to protect investors’ lawful rights and interests, the company hereby makes the following statement:

1. Financial products issued on a certain platform that relate to projects involving cooperation between Xiangyuan Holdings and the real-estate business have some cases of overdue redemption. Xiangyuan Holdings and the company’s actual controller assume joint guarantee liability for the above-mentioned redemption obligations. Xiangyuan Holdings and the company’s actual controller are currently communicating and handling the specific circumstances of the overdue redemption with the relevant parties.

2. The financial products involved in this incident are not related to Xiangyuan Culture and Tourism or any of its invested/controlling subsidiaries. Xiangyuan Culture and Tourism does not assume any redemption or guarantee obligations, and the company has not provided any guarantee or credit enhancement for the redemption of any financial wealth-management products.

3. The company’s current production and operations are normal. The company’s management commits to follow the “Code of Corporate Governance for Listed Companies,” ensuring independence from its controlling shareholder and actual controller in areas such as assets, personnel, finance, institutions, and business.

In addition, the other two listed companies under Xiangyuan Holdings, Jiao Jian Co., Ltd. and Haichang Ocean Park, have also issued similar announcements.

The overdue incident mentioned by the three listed companies refers to the redemption crisis of “Zhejiang Financial Center.” “Zhejiang Financial Center” is short for Zhejiang Financial Assets Exchange Center. Recently, many investors posted on social media, saying that “some financial asset income-right products traded on the Zhejiang Financial Center platform have matured without being redeemed.”

Previously, investors could purchase certain “income-right products” through Zhejiang Financial Center and expected to earn a certain return (for example, a promotional yield rate of about 4% to 5%), which attracted some people who wanted relatively steady wealth management.

This time, a batch of wealth-management products offered on the Zhejiang Financial Center platform and provided with a guarantee endorsement by the Xiangyuan Holdings Group failed, after their maturity at the end of November 2025, to pay investors back the principal and interest on time—that is, an overdue redemption occurred.

It is noteworthy that, at the end of October 2024, the qualification for financial asset trading business of Zhejiang Financial Center was revoked.

The Zhejiang Provincial Local Financial Regulation Bureau issued an announcement stating that it would no longer retain the financial-asset trading business qualification of Zhejiang Financial Assets Exchange Center Co., Ltd. (Zhejiang Financial Center). “From the date of this announcement, there will no longer be any financial-asset trading venues in our province. After the cancellation of Zhejiang Financial Center’s financial asset trading business qualification, it does not affect the company’s obligation to properly assume the legal relationships it should bear in accordance with the law and it will continue to assume the market-subject responsibility for disposing of its existing business; it does not affect the financing entities involved in existing business from continuing to bear responsibilities such as timely redemption in accordance with contractual provisions.”

(Editor: Wenjing)

Keywords:

                                                            Xiangyuan system