Shanghai-based Hywin Wealth will launch an internal probe into missed payments from its investment products.
A special committee has been formed at Hywin Wealth to look into missed payments from investment products, according to a statement. The committee is made up of senior managers at the firm and «material developments» from the investigation will be shared «in a timely manner».
«The asset managers of these products were unable to reach an agreement with the relevant clients to defer redemption. While the Company acted only as distributor of these asset-backed products, the clients are now demanding repayment from the Company,» the Shanghai-based firm wealth manager said.
«Any failure to adequately deal with these redemption issues could materially and adversely affect our reputation, client relationship, business, financial condition and prospects.»
Tanking Stock
This month, Hywin Holdings – parent of Hywin Wealth – has seen its Nasdaq-listed share price plunge. It has traded around $7 per share since mid-July but in December, it has fallen as low as $2.37 before rebounding to around $2.49 as of today.
According to a US Securities and Exchange Commission filing, Hywin Holdings had 8.5 billion yuan ($1.2 billion) in assets under management as of June 2023.
