After Xu Jiayin, the founder of China Evergrande Group, was controlled by Chinese officials last week, the Wall Street Journal quoted people familiar with the matter and revealed that Chinese officials are investigating whether he is trying to transfer assets overseas under the company's financial difficulties.
The Wall Street Journal Sunday (October 1) also mentioned in the report that Evergrande is one of the many real estate developers who have strived to stand on their heels for three years, but their numbersThe plan to reorganize one billion US dollars in debt has failed.With the increasing bad news in the Chinese real estate industry, more and more economists and investors have called on officials to take more coordinated measures to restore investor confidence and help real estate developers to clear their debts.
Reported that in the face of Evergrande's issue, the Chinese government may eventually require major intervention, just as the US government was forced to intervene during the 2008 financial crisis.
George Magnus, a assistant researcher at the China Center of Oxford University and former chief economist in UBS, said that the Chinese government should take more decisive measures to remove the debt of real estate developers and "let real estate developers,Banks and other stakeholders shared losses. "
On the other hand, Evergrande Group and Evergrande Property issued an announcement on the website of the Hong Kong Stock Exchange on Monday (October 2), saying that they have applied to the Hong Kong Stock Exchange from Tuesday (October 3)Starting from 9 am, stock trading is restored.
The announcement stated that Evergrande Group announced the inside information of compulsory measures in accordance with the law on Thursday (September 28), the executive director of the company and the chairman of the board of directors.
The Board believes that there is no other inside information that the company needs to publish.
Evergrande Property also said that the board of directors believed that the company's operating conditions were normal.Evergrande Group's announcement did not mention this.
As of now, Evergrande Automobile has not issued an announcement of a resumption application.China Evergrande, Evergrande Property and Evergrande Automobile three "Evergrande" shares have temporarily suspended trading on the Hong Kong Stock Exchange from 9 am last Thursday.
One day before the temporary suspension (27th), after the news of Xu Jiayin's control was reported, all three stocks dived by more than 10%.
Since the end of 2021, Evergrande Group has seriously funded debt.According to the group's financial report, as of the end of June this year, Evergrande's total liabilities were 2.39 trillion yuan (RMB, S $ 450 billion).Evergrande's shares were suspended on March 21, 2022, and only resumed trading in July and August this year.
