(Hong Kong/Washington Comprehensive News) China Evergrande Group, which is deeply trapped in the debt crisis, applied for bankruptcy protection in the United States on Thursday (August 17) local time, causing public opinion uproar.Evergrande issued an announcement on the Hong Kong Stock Exchange on Friday that clarifying that the company's application to the US court was part of the overseas reorganization procedure and did not involve bankruptcy applications.

Comprehensive Luya Club and Bloomberg reported that the court documents showed that China Evergrande Group applied for bankruptcy protection in New York in accordance with Chapter 15 of the US Bankruptcy Law.The application also shows that the group is seeking recognition of the reorganization negotiations on three companies in the Hong Kong, Cayman Islands and the British Viking Islands.

Evergrande Group's related company Tianji Holdings (TIANJI) and Sceneryjourney, also apply for bankruptcy protection from the Manhattan bankruptcy court on Thursday on Thursday.

According to the above clauses, companies that are receiving debt restructuring can be protected by US assets, and creditors cannot prosecute or seize the company's assets in the United States.

As a real estate developer with the most liabilities worldwide, Evergrande's move has quickly attracted attention.The outside world believes that this is the latest signs of continued to spread and spread in China's real estate industry debt default risk.

Evergrande announced on Friday that it noticed that the relevant media reports clarified that the company is currently promoting overseas debt reorganization in accordance with the plan.

Announcement stated that due to the Group's US dollar bonds under the jurisdiction of New York's relevant laws, the company applied to the US court to recognize the Hong Kong and the British Virgin Islands (BVI) legal system based on the US CodeThe arrangement is part of the normal promotion of overseas reorganization procedures, which does not involve bankruptcy applications.

A person familiar with the matter analyzes that Evergrande's application for bankruptcy protection is essentially a program.According to US law, the real estate developer with the most liabilities in the world must do so. This step is part of the reorganization process.

Evergrande Group had debt defaults in 2021, and has negotiated for nearly two years on reorganization and creditors.As of the end of last year, the total loan was as high as 2.437 trillion yuan (RMB, about 449.2 billion yuan).

Chinese real estate giants have been in succession in recent years. Except for Evergrande, Country Garden, the largest private real estate company in China, failed to pay debts on time this month. Ocean groups with state -owned capital background have also fallen into the crisis of debt defaults this week.The debt crisis of the real estate industry has also brought a series of chain reactions. China ’s asset management giant China Plant Group has reportedly stopped paying for wealth management products and will launch debt reorganization.

Economists believe that the risk of China's real estate industry may spread to a wider range of economic fields, and the government must take strong measures to save the precious real estate industry.

However, for the current predicament of the industry, China officially emphasizes "staged issues".China National Bureau of Statistics spokesman Fu Linghui on Tuesday (August 15) said that the current Chinese real estate market is "generally in the stage of adjustment". As the market adjustment mechanism has gradually played, the real estate market policy adjustment is optimized, and the risks of housing enterprises are expected to gradually obtain.Solution.

The Central News Media Economic Daily also posted on Friday that recently, the debt risks of individual head real estate companies have been exposed, and the market expects to be affected, but it must be clear that the problem is phased.The market adjustment mechanism has gradually played a role, and the market can achieve smooth development.

The article says that we must strengthen confidence and keep their strength, and continue to grasp the relevant work. At the same time, we must soberly realize that the risk resolution process cannot be achieved overnight, "the market must give a certain patience."