In 2023, China's business community has set off a sensational storm, and many well-known enterprises and business giants have encountered crises and adversities of varying degrees one after another. Companies such as Country Garden, Gome, Evergrande, and Alibaba have encountered difficulties, and business giants such as Xu Jiayin and Wang Jianlin have also experienced great changes during this period. This situation has had a huge impact on China's economy, and it has also made all sectors of society begin to re-examine the current economic situation and development direction.
On July 30, 2023, Yang Huiyan, Chairman of the Board of Directors of Country Garden, announced the donation of HK$6.4 billion worth of shares in Country Garden Services, a move that has aroused widespread attention and discussion. However, just a few days later, Country Garden ushered in an unprecedented predicament. Yang Huiyan admitted in an internal letter that Country Garden was in its most difficult moment in history, and then the real estate giant officially announced a thunderstorm, with a loss of nearly 50 billion in the first half of the year.
The news had a huge impact on China's real estate market. Previously, China Evergrande had already released its financial reports for 2021 and 2022, showing a total loss of more than 800 billion in the two years. Soon after, Xu Jiayin was suspected of violating the law**, and the leaders of Bank of China, Everbright Group, Bank of Guangzhou and other banks were also dismissed one after another. The bank-led investigation led to a widespread decline in the profits of listed companies, with 10 of the top 15 banks experiencing a decline in both revenue and profit.
Before the Country Garden thunderstorm, Gome Electric Appliances and Suning also encountered difficulties one after another. Suning was reorganized after Huang Guangyu was imprisoned, and Zhang Jindong lost actual control. And Gome Electric has lasted for more than ten years after Huang Guangyu was imprisoned, but it is about to fall in the cold winter of 2023.
This was before Mr. Huang was imprisoned, at a time when Gome was one of China's largest retail companies. However, after Huang Guangyu was imprisoned, Gome Electric successively faced a series of problems, including declining sales and large-scale employee departures. Huang Guangyu had planned to open 10,000 supermarkets within three years, but this plan did not materialize.
At the same time, Suning is also facing a major dilemma. Zhang Jindong lost de facto control, and Suning reorganized. In the past, there was a relationship of competition and cooperation between Gome Electric and Suning. Huang Guangyu had sought cooperation with Mr. Zhang, but was rejected. However, in 2023, both companies are in trouble, and China's retail market is starting to change dramatically.
Unlike the real estate and retail sectors, Alibaba faces regulatory pressures. Since 2020, China** has taken a series of regulatory actions against internet giants, aiming to break monopolies and maintain fair competition in the market.
In 2023, Alibaba has also become the focus of regulatory action. The company faces investigations and penalties in a number of areas, such as antitrust, data security, and other issues. Alibaba's share price has also been greatly affected, and its market value has fallen sharply. In addition, Alibaba has been forced to carry out a series of structural adjustments and business integration.
This series of regulatory actions has had a great impact on China's internet companies, many of which have been forced to close or transform. The position of China's Internet giants has also been shaken, and China's Internet industry has begun to enter a period of adjustment.
The difficulties and adversities of this period have made all sectors of Chinese society re-examine the current economic situation and development direction. China's property market continues to bubble, corporate debt ratios remain high, and financial risks are rising, making people question whether this high-speed growth model is sustainable.
China's economy is facing a series of challenges and pressures, including structural contradictions, industrial upgrading, environmental pollution and other issues. China** has also begun to adjust its economic policies, increase support for innovation and technology, and promote economic transformation and transformation of development models.
During this period, the domestic consumer market began to pick up, and the enthusiasm for innovation and entrepreneurship also increased. China actively promotes scientific and technological innovation and green development, hoping to achieve sustainable economic development through transformation and upgrading.
2023 is a turbulent period for China's business community, with many well-known companies and business giants encountering crises and adversities one after another. The predicament of this period has led to a re-examination of the current economic situation and development direction, and China's economy is also facing a series of challenges and pressures. In this context, China has stepped up its support for innovation and technology to promote economic transformation and the transformation of development models.