Counting up, this should be the first time that Boss Xu of Evergrande has spent the New Year in the detention center. Recall that a few years ago, he was one of the richest men and a giant in the industry. Now they can only spend the Lunar New Year in the detention center, and the situation is almost a mess.
I think back then, Boss Xu also stood in front of the merit monument and strutted forward. Evergrande's executives in the early years knew that there was a set internally"Evergrande Treasure Book"Networking It is a beautifully made chest full of gold and silver coins and fine wines. During the New Year's holidays, Boss Xu always holds the treasure book in his hand and runs around to visit. From ** to the powerful, no one is spared. This kind of crazy co-optation operation is not uncommon in the real estate industry.
Lai Changxing and Hu Xueyan have also been like this. They are attached to the bigwigs in the political and business worlds, and they climb up step by step. However, this path often leads to hell as well. The slightest change in someone's thighs may cause them to lose their footing immediately. When a whale falls, nothing is born. Many of Evergrande's creditors and businessmen are now also suffering from the chain reaction.
Real estate has always been an accelerated channel for traditional quick riches. As long as there is land, seize a period of primitive accumulation, and you may become rich overnight. But this has also brought about the ravages of the unspoken rules of the industry. Acquiring land at all costs, obtaining privileges by various means, has become"Rules"。
Boss Xu had to reflect on whether he should write a "Confession" from prisonHe benefited greatly from obtaining huge loans, operating outside the norm, and gaining connections. But in retrospect, it's just nothing new under the sun. Not only him, but the entire industry has grown up in this deformed ecology, which cannot be achieved overnight.
Now, the Hong Kong court has ruled on the liquidation of Evergrande Group, and the judge said bluntly"Enough is enough"。After the mainland recognized the judgment, the fate of the unfinished buildings of 1 million owners is worrying. Evergrande is already insolvent, and the most promising one may only hope that ** will take over urgently and slowly digest this mess. The owners will have to wait a long time.
In Boss Xu's hometown of Zhoukou, some villagers have moved on the merit monument erected back then. "Forever"The four words have been erased, and the villagers have lost their enthusiasm for repairing. Xu Jiayin's reputation has been wiped out. And in the institute, in addition to reflecting on his future, he may be thinking about how to do it"Innocence in the world"。
With the collapse of Evergrande, the domino effect in the industry continues. Country Garden, Kaisa, Sunac, R&F, etc., are all trembling on the cusp of this storm. Some of the original shortcomings have been deep, and now they are in jeopardy. The common dilemma faced by most companies is governance imbalance, unconventional expansion, and high debt ratios.
The industry turmoil is undoubtedly a major lesson for financial regulators. In the future, whether it is in the formulation of market rules, checks and balances, credit management, etc., it will have to be thoroughly rethought and reformed. We need to reshape the industry ecology, establish bottom-line rules and industry order, and let a good market order truly benefit the people.
Now Boss Xu can only reflect on his past mistakes in the detention center and wait for the trial. But this is inseparable from the problem of the ecology of the entire real estate industry. We look forward to learning from this crisis and promoting reform and innovation to prevent the recurrence of such corporate and family monopolies. Only in this way can China's economic crisis be resolved and the real estate bubble completely washed away.