On July 30, 2023, Yang Huiyan, Chairman of the Board of Directors of Country Garden, donated a stake in Country Garden Services worth HK$6.4 billion, which caused a huge sensation. However, a short period of time, Country Garden encountered a huge predicament, Yang Huiyan admitted in an internal letter that the company was in the most difficult period in history, and then, the universe's first real estate company officially suffered a thunderstorm, losing nearly 50 billion in the first half of the year alone. A similar situation is not only happening in Country Garden, but also in China Evergrande and other real estate companies. China Evergrande reissued its financial reports for 2021 and 2022, which showed a total loss of more than 800 billion yuan in the two years. This made everyone realize that for real estate tycoon Xu Jiayin, money is really just a number.
After Xu Jiayin was arrested, Liu Liange, former party secretary and chairman of the Bank of China, was dismissedLi Xiaopeng, former chairman of Everbright Group, was arrestedYao Jianjun, the former chairman of the Bank of Guangzhou, was investigated. At the same time, the implied profits of listed companies have also begun to decline on a large scale. Ten of the top 15 banks in terms of revenue saw declines in both revenue and profit.
Gome Electric has lasted more than ten years after Huang Guangyu was imprisoned, however, it is about to fall in the cold winter of 2023. In contrast, Huang Guangyu's old rival Suning was reorganized, and Zhang Jindong lost actual control. Wang Jianlin and Huang Guangyu were competitors, but Wang Jianlin was overpowered by Huang Guangyu when he asked for cooperation. However, Huang Guangyu became China's richest man three times after being imprisoned, and Wang Jianlin caught up with that record. However, at the beginning of 2023, Wanda suffered multiple listing failures, and Wanda Commercial Management also faced a VAM risk of about 30 billion. Wang Jianlin not only needs to pay 30 billion equity repurchase funds, but also needs to pay 12% annual interest. Wang Jianlin was tortured by pressure, and the whole person lost a lot of weight.
Mr. Ma used to express his opinions on domestic and international issues, but now he barely speaks. He lived a superficially breezy life, but his Alibaba suffered an evaporation in market value. The company's market value shrank by $600 billion, the biggest drop since the company's initial public offering. Alibaba's management has also been reshuffled, with Chairman Daniel Zhang resigning as CEO.
China** began to strengthen the supervision of the Internet industry, fining and regulating giants such as BAT (, Alibaba, Tencent). It was fined more than 10 billion yuan, and Tencent was also fined about 4 billion yuan. In addition, Alibaba was fined more than 30 billion yuan and ordered to restructure its business. This series of regulatory actions has had a huge impact on internet giants, who have had to adjust their business and operating models.
To sum up, China's economy has encountered a series of difficulties and challenges in 2023. The real estate market crash, the fall of senior executives of large enterprises, the decline in bank profits, the difficulties of e-commerce giants, and the strengthening of Internet supervision have all had a significant impact on China's economy. The solution of these problems will require the joint efforts of enterprises, enterprises and all sectors of society.