News Karnataka
Thursday, December 07 2023

Investment company goes missing with $313 mn of Chinese builder’s money

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New Delhi: A company that was once one of China’s biggest property developers says it has “lost contact” with a wealth manager that has $313m of its money, BBC reported.

China Fortune Land Development says British Virgin Islands-registered China Create Capital was supposed to have invested the funds on its behalf. Fortune Land told investors it has reported the issue to Beijing police, the report said.

This month, the firm unveiled plans to restructure its debts after defaulting on billions of dollars of bonds.

In 2018, one of Fortune Land’s overseas operations signed a deal that entrusted a company called Wingskengo Ltd to provide investment management services to the property developer, according to a document filed this week with the Shanghai Stock Exchange.

The filing goes on to detail how, as instructed by Wingskengo, Fortune Land transferred $313m to China Create Capital, the report said.

Fortune Land said it had expected the investment to generate annual interest of 7 per cent to 10 per cent until the agreement was due to expire at the end of 2022.

However, Fortune Land said it is now unable to contact Create Capital, adding there is “no way to judge” what impact the missing money will have on its current and future profits, the report said.

Like several other major Chinese real estate companies, Fortune Land has seen its shares plummet in recent months as the industry was gripped by a debt crisis.

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