Chinese real estate giant Evergrande has been trapped in debt mud in the past two years. How can the crisis have intensified in the past month?
Evergrande Group, which has been suspended for more than two years, met the condition to resume trading on August 28, but the stock price fell more than 80%shortly after the opening.
Subsequently, many current and former executives of the group and their subsidiaries have been checked, including Pan Darong, the former chief financial officer responsible for the group's funding work, and Xia Haijun, the former president of Evergrande, and the former president of Evergrande.Du Liang, a representative and executive director, Zhu Jialin, the former vice president of the group and the chairman of the former Evergrande Life, Evergrande's financial field, and Xu Jiayin, the founder of the Evergrande Group, who dominated Evergrande Fortune.
Evergrande announced on September 22 that the debt restructuring meeting originally scheduled to be held this week was announced; on the 24th, it was announced that because the subsidiary was under investigation and could not issue new debt.By the evening of the 28th, the group confirmed that Xu Jiayin was adopted by Chinese officials for suspected illegal crimes.
What is the last straw of the group's founder Xu Jiayin?What crimes may he be suspected?
It can be seen from the recently investigated Evergrande executive background that Xu Jiayin may first involve illegal fund -raising.As Evergrande's largest financing platform, Evergrande Wealth uses high interest rates as a bait, which has attracted the addition of many investors, especially small companies and retail investors.EssenceEvergrande Fortune began to explode since 2021, and has repeatedly reduced the staging redemption amount. On the 31st of last month, it was directly announced that it was impossible to carry out redemption of this month. Many investors may have lost their blood.Bloomberg believes that this is the last straw that promotes Chinese officials to Evergrande.
Secondly, Xu Jiayin may involve the misappropriation of subsidiaries assets and pre -sale funds.Evergrande missed 13.4 billion yuan of funds from Evergrande Property listed in Hong Kong from 2020 to 2021, which enabled the group to get more financing.
Similarly, Evergrande Group detour the supervision account misappropriation of housing pre -sale funds for repaying financial institutions borrowing, group operations and further expansion of landscapes, and developing new real estateA large number of rotten tail buildings.Xu Jiayin was also accused of having financial fraud, and transferred assets with his ex -wife Ding Yumei "technical divorce".Evergrande has also been questioned in the deep bundling of local governments and banks over the years, and there may be corruption.
After the Xu family seals down, what should Evergrande owner do?Will Chinese officials intervene or rescue the market?
Real estate is the pillar industry of the Chinese national economy. The Chinese government has given Evergrande's time to rescue itself, but now it is obviously incompatible.
After Xu Jiayin was controlled, Evergrande's reorganization plan added more uncertainty, but once Evergrande went bankrupt, it was not only 6 million Hengda rotten buildings, but the entire Chinese property market and upstream and downstream.The industrial chain will be severely damaged, so some people in the industry will therefore speculate that the government may be rescued.
For the form of assistance, it may be that the government pays part of the funds, and then cooperates with other funds to acquire Evergrande; it may also be just a leader and eventually give it to several major asset companies to take over.
