(Beijing Comprehensive News) After Xu Jiayin, the founder of China Evergrande Group, was controlled by Chinese officials last week, the media said that Chinese officials were investigating whether he had transferred assets overseas.
The Wall Street Journal quoted people familiar with the matter and revealed that Chinese officials are investigating whether Xu Jiayin is in a financial crisis and facing the pressure of guaranteeing the property, trying to transfer assets overseas.The report pointed out that the bad news of the real estate market continued to appear, and China's officials faced strong measures to intervene in the market to restore the pressure of people's confidence.
Since Evergrande announced on Wednesday (September 27) that Xu Jiayin was adopted by Chinese officials, the "Evergrande" three stocks -Evergrande Group, Evergrande Property and Evergrande Automobile -from last Thursday(September 28) Temporarily suspend trading in the Hong Kong Stock Exchange.
Evergrande Group and Evergrande Property on Monday (October 2) applied to the Hong Kong Stock Exchange for resumption of trading in the evening, saying that the company's board of directors believed that the company currently does not have other inside information that needs to be announced.On Tuesday (October 3), Evergrande and Evergrande's property resumed trading, of which Evergrande's stock price rose 42%for a time, closed up by 28%, Evergrande's property market rose 14%, closing a 3.39%closing of 3.39%.Evergrande Automobile has not issued a resumption of trading.
The unusual phenomenon of stock prices has risen to Evergrande's pressure on supervision and financial dilemma. Bloomberg quoted analysts that the current stock price fluctuations are driven by speculative funds.Analysts pointed out that Evergrande's stock resumption cannot alleviate the market's concerns about the risk of regulatory regulators of the developer.According to the current regulations of China, Evergrande cannot issue new bonds, which may lead to failure to reorganize overseas debt and increase liquidation risks.
Evergrande crisis has not been resolved, and the Chinese real estate market has not showed significantly recovery.According to data from the China Real Estate Research Institute, the prices of new houses in 100 cities in China have risen from the previous month, but cities with decline in second -hand housing prices have continued to increase.
