The stock price of China Real Estate Giant Evergrande Group fell three consecutive days this week, and finally rebounded on Thursday.Netizens lamented: It seems that Boss Xu still has a way.
Triggering Evergrande's stock price diving is a court ruling reported on Monday.The Intermediate Court of Wuxi City, Jiangsu Province should freely freeze the deposit of 132 million yuan (RMB and S $ 27.7 million) in Evergrande's subsidiary.On the same day, Hunan Shaoyang City Housing and Urban -Rural Development Bureau called Cartoon Evergrande's pre -sale of two local projects.Evergrande's stock market value evaporated 74 billion Hong Kong dollars on the same day (the same, Same as 13 billion yuan), and the group chairman Xu Jiayin also shrunk by HK $ 16 billion.
However, the Shaoyang Housing and Urban Construction Bureau will terminate the sales ban on Evergrande the next day; after two days, Evergrande announced that it had "properly resolved" debt disputes with Guangfa Bank.The group's stock price should be rebounded.This is not the first time that Evergrande has been in danger, nor is Xu Jiayin turned into danger.It can be said that Evergrande's development history and Xu Jiayin's entrepreneurial history are to turn the crisis into a turnaround again and again.
Many people know Xu Jiayin, during the period of the National People's Congress of China and the CPPCC "Two Sessions" nine years ago.At that time, as a representative, he trot all the way with a smile, and the Hermes belt was exposed around his waist.However, the most rich real estate merchant in China did not be born with a golden spoon, but to reverse the fate by starting in spiral.
Xu Jiayin was born in rural Henan. He lost his mother since he was a child. He once picked up dung and he had been a security guard in the village. Later, he worked in a state -owned steel plant for 10 years.In 1992, he went south to Shenzhen and founded Evergrande four years later.The first project Jinbi Garden was not favored by the market, setting up the amazing record of land acquisition, construction, construction, selling, and delivery in the same year, making Xu Jiayin famous in the real estate world.
During the financial crisis in 2008, Evergrande, which expanded rapidly, was in a crisis of fund chain. At that time, the outside world was almost determined that the company's gas was exhausted.However, Xu Jiayin was looking for friends while supporting the company to get more than 500 million US dollars (S $ 680 million) in financing;As a result, Evergrande not only fell down, but also went on the market in the following year, sending Xu Jiayin to the first place in the Forbes Chinese rich list.
Xu Jiayin's courage to break the boat and dare to do it to help Evergrande turn in danger, but also promotes the group's rapid expansion.Since 2010, Evergrande has borrowed land and obtain land, and has invested in many fields such as football, grain and oil, mineral water, dairy, new energy vehicles, etc.As of the end of last year, the scale of Evergrande's total debt has risen to 1.95 trillion yuan (RMB, the same below), becoming the most liability developer in the world.
The Chinese government sacrificed the "three red lines" to real estate developers last year, asking real estate companies to remove leverage and reduce liabilities.Evergrande, which has been operating in high debt and high leverage models, all three red lines have been stepped on.Although Evergrande announced in June that the interest liability amount had reduced from the peak of last year by about 300 billion yuan, the road to debt reduction was still difficult.It is rumored that the Chinese financial regulatory department talked about Xu Jiayin last month, asking him to resolve debt dilemma as soon as possible to avoid systemic financial risks.
But on the day of the CPC's century celebration on July 1, Xu Jiayin was still invited to participate in the celebration conference.In the photo taken on the Tiananmen Tower, his iconic smile is as always, as if telling the outside world: Boss Xu is okay, Evergrande will not be okay.notIn the past, in the context of official emphasis on "housing does not live in housing" and curbing the risks of the property market, the developer's past operating model is unsustainable.Xu Jiayin's serial operation this week did not really alleviate Evergrande's crisis of confidence.The Group's stock price fell again on Friday, and the increase in the previous day was vomited, showing that the market had no trust in Evergrande.
Under the pressure of heavy debt, Evergrande is still active in Hong Kong.Chen Fen, executive deputy general manager of the company, attended the dinner with several senior Hong Kong government officials in March this year. On the same day, he was suspected of trying to rape.This news has detonated public opinion in Hong Kong over the past few weeks.At the same time, the four large -scale Hong Kong banks suspended the provision of mortgage loans to Evergrande this week, indicating that the operation did not work.Chen Fen has resigned from Evergrande.
Analysis believes that unless Xu Jiayin accelerates the sale of assets, introduces new strategic investors, or obtains the government's support, Evergrande's funds will continue.Whether the authorities will help Evergrande's help to prevent the systemic risks caused by the collapse of this real estate giant, becoming the most concerned on Evergrande investors.
Boss Xu, who is good at "changing his life against the sky," can you still re -turns the danger?
