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

China Fund News reporter, Taylor

Hello everyone. The overdue incident involving “Xiangyuan Group” financial products continues to gain momentum, and its three listed companies have all issued announcements urgently to “sever” related ties.

On the evening of December 7, Xiangyuan Culture and Tourism announced that media reports had appeared online stating that certain financial products in which Xiangyuan Holdings, the indirectly controlling shareholder of Xiangyuan Culture and Tourism, and the company’s actual controller would assume joint and several guarantee liability had experienced partial overdue redemption/payment, drawing investor attention.

The company verified the relevant matter with Xiangyuan Holdings and the company’s actual controller and conducted a self-check. To avoid misleading the market with inaccurate information and to protect investors’ lawful rights and interests, the company hereby provides the following explanation:

1. Some of the financial products issued on a certain platform involving projects in cooperation with Xiangyuan Holdings real estate have experienced partial overdue redemption/payment. Xiangyuan Holdings and the company’s actual controller assume joint and several guarantee liability for the aforementioned redemption/payment obligations. Xiangyuan Holdings and the company’s actual controller are communicating and handling the specific circumstances of the overdue redemption/payment with the relevant parties.

2. The financial products involved in this incident are unrelated to Xiangyuan Culture and Tourism and its invested and controlled 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 production and operations are currently normal. The company’s management commits to comply with the “Code of Corporate Governance for Listed Companies,” ensuring independence from the controlling shareholder and the actual controller in terms of assets, personnel, finance, institutions, and business.

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

The overdue incident involving financial products mentioned by the three listed companies refers to the redemption crisis of “Zhejiang Financial Center.” “Zhejiang Financial Center” is the full name of 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 not been redeemed upon maturity.”

Previously, investors could purchase certain “income-right products” through Zhejiang Financial Center and expected to receive a certain return (for example, the advertised yield was approximately 4%~5%), attracting some people who wanted stable wealth management.

This time, a batch of wealth management products sold on the Zhejiang Financial Center platform and provided with guarantees and endorsements by the Xiangyuan Holdings Group, after maturing at the end of November 2025, were unable to pay back the principal and interest to investors on time—meaning an overdue redemption/payment occurred.

It is worth noting that at the end of October 2024, the qualifications for financial asset trading business of Zhejiang Financial Center were revoked.

The Zhejiang Provincial Department of Local Financial Regulation issued an announcement stating that it will no longer retain the financial asset trading business qualification of Zhejiang Financial Assets Exchange Center Co., Ltd. (Zhejiang Financial Center). “From the date this announcement is issued, there will be no financial asset trading venues in my province. After the cancellation of Zhejiang Financial Center’s financial asset trading business qualification, it does not affect the company’s lawful and proper assumption of legal relationships it should bear, and it will continue to bear the market entity responsibility for disposing of existing business. It does not affect the financing entities of existing business continuing to assume responsibilities such as timely redemption/payment in accordance with the contract provisions.”

(Editor: Wen Jing)

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                                                            Xiangyuan Group