Goodbye, China Evergrande!

Mondo Sports Updated on 2024-02-01

A winding-up order has brought Evergrande's debt crisis to the stage.

This morning (January 29), the High Court of Hong Kong issued a letter to China Evergrande, a Hong Kong-listed companyWinding-up order

China Evergrande's debt restructuring plan lacked progress, the company became insolvent, and China Evergrande was officially ordered to liquidate

As a result, China Evergrande's share price fell 20% and was immediately suspended. The stock price was 0HK$163, with a total market capitalization of 21HK$500 million, less than 1% of the all-time peak (HK$370 billion).

Evergrande died, and each survivedWhat is a winding-up petition and what is winding-up? I won't explain much here, if you are interested, you can search for yourself.

In any case, the winding-up order of the Hong Kong High Court is equivalent to the bankruptcy liquidation procedure in the mainland.

Prior to this, Evergrande had applied for adjournment of the hearing eight times, with a total adjournment of more than 19 months.

But after all, there is no way to return to heaven.

The winding-up order of the Hong Kong High Court is actually like a death notice, declaring: Evergrande is dead, and plans should be made early.

After the winding-up order is issued, all the rights and obligations of Evergrande will be transferred to the liquidators, all the responsibilities and rights of the board of directors will be stopped, and the liquidators will be responsible for the management and distribution of Evergrande's property, and Evergrande will completely lose control of Evergrande real estate.

Why is a winding-up order issued?

I think the most critical reason should be:Creditors have despaired, believing that Evergrande no longer has many valuable assets; If the liquidation is not cleared, the assets that are already few left may further depreciate in value, and even the people who collect the scrap will not be able to look down on them.

Take advantage of the fact that there are still three catties of nails in the rotten ship, so let's divide it quickly, mosquito legs are also meat, and you can get back as much as you can

Evergrande is a mess, and there is no way to clean it up completely.

Overseas creditors can basically only grit their teeth and swallow blood, and they can get back as much as they can in the liquidation.

The domestic debt is also expected to be gone**, and most of the funds are used to buy land. Those lands have either become unfinished buildings, or they have been forcibly repossessed after a delay in construction.

In other words, the money lent to Evergrande by domestic banks, let alone getting back 50%, it is estimated that they can get back 10%. 50%..Hahaha, even the king in the wishing pond didn't dare to be so naïve.

Evergrande Automobile is also finished, with a debt ratio of 99%, no one dares to take it, the hole is too big, and it can bury all the receivers.

Evergrande has long since died de facto。Resurrection can only be in a dream.

From the moment Lao Xu **, Evergrande's fate has been doomed.

If you are not decent, there will be someone who you are decent after all.

Fate stretched out its hand, planted the seed, and smiled secretly, waiting for the day when it would blossom and bear fruit.

A funeral of an era

Liquidation does not mean the end of the whole play, and there is also a guarantee of delivery

From the bullish back then to the current liquidation judgment, it is embarrassing.

However, the issuance of a winding-up order, does it mean that Evergrande ushers in".The end of the play"What?

Not. Judging from the in-depth report of "21st Century Finance", "the significance of the winding-up order issued by the Hong Kong court in legal proceedings is andPsychological impact on the market, which is far greater than the actual impact on Evergrande Group's domestic business and risk mitigation."

Evergrande can actually file an appeal, but the winding-up process will not be suspended.

Judging from various reports, the liquidation of China Evergrande does not mean that the domestic entity of Evergrande Group is bankrupt. But this series of procedures is generally only for China Evergrande and its directly held assets.

As one of the overseas listed entities of Evergrande Group, China Evergrande and its domestic and foreign subsidiaries are independent legal persons。That is to say,The impact of the liquidation on the onshore delivery of the property will be limited

As for the issue of "handing over", there is no need to worry too much.

According to the judicial interpretation issued by the Supreme People's Court in April last year, under the corresponding conditionsConsumers of commercial housing claim their right to claim for delivery of housing and the right to claim for price return have priority over other creditor's rights to be repaid

Judging by the reality of the situation,It is expected that the funds after Evergrande sells its assets will first be used to "ensure the delivery of buildings"., which is related to people's livelihood and a large number of financial institutions, followed by priority creditors; As for overseas creditors and Evergrande wealth investors, hehe.

Evergrande is dead, but Evergrande is still there, and it has to ensure the delivery of the building

This is "the only air cushion that lifts the wounds of the times".

A funeral of an eraHow did Evergrande get to the point where it is today? Let's not review them one by one.

As a real estate person, I have dealt with Evergrande for three or four years.

Just,The era of Evergrande has passed, and the era of real estate is gone

The new man did not come, but the old man remained.

According to data from the Research and Development Department of the Guangzhou Intermediate People's Court, as of the end of 2022, Guangzhou's residential inventory area was about 11.83 million square meters, and it would take about 20 months to digest the inventory of new houses.

It was about 12 months before.

Theoretically, the more houses, the more advertising demand.

However, times have changed. Housing companies and buyers have also changed.

If you do it well, you don't need advertising; If you don't do it well, you don't have the money to advertise. (just kidding).

Today's real estate is like a middle-aged uncle who is depressed and burdened like a cow.

The common people pointed to it to make a fortune and ** to point to it to buy land。But times have changed.

I don't want to list them again, I'm afraid to write myself to cry.

All in all, under the nest, there are no eggs. After all, it was you, me, and him who carried everything

The governor of the god at night, hairAmbition——My dear motherland, the explosion of science and technology, and the creation of high growth for another 40 years!

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