Evergrande PropertyAn announcement was issued about the lawsuit, saying it wouldChina Evergrande Groupand related companies sued to the Guangzhou Intermediate People's Court, demanding repayment of 19$9.6 billion in deposit principal and 15.2 billion yuanInterestEvergrande PropertyIt is a Hong Kong listed company, and according to the announcement, the actual controller is Xu Jiayin, who holds 51 of the company71% of the shares. The lawsuit has attracted widespread attention because both parties to the lawsuit have a relationship with Xu Jiayin, the defendant (China Evergrande Group) is the plaintiff (Evergrande Property) parent company.
Evergrande PropertyThere are specific reasons for this lawsuit. First of all,Evergrande PropertyI hope to show my attitude of actively recovering losses through litigation and express my attitude to the outside world. Secondly,Evergrande PropertyIt may be desirable to prepare for offshore debt restructuring as offshore debt restructuring is essential for:EvergrandeThe development of the Group is of paramount importance. Finally, the lawsuit could be interruptedStatute of Limitations, forEvergrande PropertyStrive for moreRight to prevailto recover losses.
1. Express attitude
Evergrande PropertySuffered a huge loss of deposits, and in order to protect its own interests, it had to be takenLawsmeans to protect rights. Suing in court is a typical way to make a statementEvergrande PropertyI hope that through this statement, the outside world can see my determination to actively recover my losses.
2. Preparation for overseas debt restructuring
The other one explodedReal estate enterprisesSunac has completed the restructuring of its offshore debts, andEvergrandeThe Group's debt restructuring plan has not been approved. Completion of offshore debt restructuring for:EvergrandeThe group is critical if it is unable to resolve its offshore debt problemEvergrandeIt will be difficult for the group to concentrate on dealing with the domestic problem of "guaranteed delivery". In order to make thatEvergrande PropertyBeing able to take on more debts and preserve value as a repayment object makes great sense to recover deposits.
3. Interruption of the statute of limitations
According to our countryLawsprovisions,Statute of Limitationsfor 3 years, if there is no act of claiming the debt within the period, it will be lostRight to prevailEvergrande PropertyThe prosecution can be interruptedStatute of Limitations, restarting the calculation of the 3-year period, which helpsEvergrande PropertyStrive for moreRight to prevailto recover more losses.
This lawsuit is the beginning of similar cases in the future, and we may see more similar announcements in the futureEvergrande PropertySuffering a deposit loss due to illegal pledgeSubsidiariesThey may also be prosecutedChina Evergrande Group。After all,EvergrandeAs a well-known real estate company in China, its total liabilities are as high as 24 trillion yuan, in the case of insolvency, such infighting plots may be staged frequently. In recent years, we have witnessed many unimaginable things inEvergrandeSuch a super-largeReal estate enterprisesWhat strange things will happen in the future?For these things, the individual is no longer surprised.
Through this dispute, we can't help but reflect on why a large-scale real estate company has come to beSubsidiariesThe embarrassing situation of suing my father's company?This not only reflects the problems existing in China's real estate industry, but also rightBusiness managementand the regulatory level put forward higher requirements.
First of all, to:EvergrandeFor example, its high debt ratio and diversified layout have become problems it faces. This also makes people wonder whether the rapid development of China's real estate industry in the past few years has neglected the control of risks and the appropriate restrictions on corporate debt ratios. Perhaps in the early stage of enterprise development, high debt can help enterprises expand rapidly, but when the industry enters a period of adjustment and faces various uncertainties, high debt ratio is no longer an advantage. Therefore, we also need to reflect on and examine the past development path and find a more sustainable development model.
Secondly, for the regulatory level, how to more effectively supervise the financial status of real estate enterprises and prevent and resolve risks is also an urgent problem to be solved. Especially for large onesReal estate enterprisesSupervision should be strengthened, strict implementation of relevant laws and regulations, to prevent the unreasonable flow of funds within the company, as well asSubsidiariesof reasonable regulation.
In addition, looking at this lawsuit, it is not difficult to find that there are deficiencies in the internal governance and supervision mechanism of the enterprise. For the company's senior management, it is necessary to strengthen the supervision of the company's affairs, not just rely on personal trust, but also need to strengthen internal audit and verification to ensure that the company's interests are not harmed.
Finally, for:InvestmentsHow to strengthen the risk identification and development of the real estate industryInvestmentsDecision-making is also crucial. In the selectionInvestmentsWhen targeting, we should not only look at the profitability, but also pay attention to the company's financial status, profit model and risk prevention ability. At the same time, we should also strengthen the regulation and guidance of the real estate market to make the real estate market more stable and transparent.
All in allEvergrande PropertySue ChinaEvergrandeThis incident has aroused widespread concern and discussion. It is not only a concrete case, but also a profound reflection and warning for China's real estate industry and corporate governance and supervision. We hope that relevant parties can take this as a warning, strengthen standardized management, and promote the healthy development of the industry.