An unprecedented economic tragedy has officially begun as the winding-up hearing of China Evergrande Group in Hong Kong's High Court has come to an end. Under the weight of 165 billion yuan of debt, Evergrande's financial structure is like a fragile spider web, crumbling in the wind and rain.
The complexity of the debt structure is dizzyingThe near-zero market value of the US dollar notes, the obligation to repurchase RV Bao's shares, and the misappropriation of Evergrande property funds constitute a trio of financial difficulties. The market's confidence in its bonds has fallen to the freezing point, and Evergrande's overseas bonds have only a meager share of the original value, which is not only the lack of confidence in Evergrande in the capital market, but also for itA silent foreshadowing of the fate of liquidation.
After several postponements, the winding-up ruling was finally landed, and the court's hammer fell under the world's attention, not only announcing the end of Evergrande, but also symbolizing the complete despair of creditors and the market for the prospect of Evergrande's restructuring. The patience and expectation of creditors eventually came to naught, the court lost patience, and the market lost confidence.
The entry into force of the winding-up order means that all operations of Evergrande will be stopped, its assets will not be disposed of, the change of shareholders will be frozen, and the trading will be suspended immediately. All this is to protect the rights and interests of creditors, not for the benefit of Evergrande's management. The management's backlash to liquidation was undoubtedly due to the imminent loss of control of the vast business empire, a loss of power that would be an unspeakable blow to them accustomed to high positions.
For Evergrande's rank-and-file employees, however, the impact of liquidation is very different. On the one hand, they may face the dilemma of losing their jobs, but on the other hand, the vastness of the job market may provide them with new opportunities. At the same time, Evergrande's executives are facing a more complicated situation. Their status and generous treatment at the top are now facing great uncertainty, and Evergrande's former glory has become a stumbling block on their job search. Executives with Evergrande work experience not only have to face the repositioning of their future career plans, but also have to bear the negative impact of this period of history in their careers.
At the center of this financial turmoil, Xu Jiayin, the actual controller, still stands. Although he holds the vast majority of Evergrande's shares through the company he holds, he is clearThe sword of the judgment is already hanging over his head. In the face of a high concentration of shareholdings, Evergrande's public shareholders are incomparably small and powerless.
All this development is not only a financial crisis, but also a profound reflection on the development model of the real estate market. The collapse of Evergrande is not only the demise of individual enterprises, but the concentrated outbreak of potential risks in the development of the entire industry, and its impact far exceeds the company itself and affects the entire economic system.
At a time when the market and employees are confused about the future, the blow of the liquidation to Evergrande's management is even more direct and profound. They face not only the challenge of finding new career opportunities, but also the challenge of their reputation and career. For a time, the former industry giants have become the object of avoidance by the market, and its negative effects are like every liability in Evergrande's debt structure, which affects the whole body.
Behind the grand curtain of China Evergrande Group, the distribution and disposal of assets have become the focus. The Evergrande system covers a wide range of assets, among which two Hong Kong-listed companies, Evergrande Property and Evergrande Automobile, have undoubtedly become the focus of attention from the outside world. ConstantLarge property, as the star asset of the group, holds as much as a shareholding51.71%, its quality is quite outstanding in the Evergrande system. Evergrande Automobile, although the shareholding ratio is even better, as high as 5854%, but they are mired in debt, and even their basic ability to continue as a going concern is in jeopardy.
Due to its stable industry characteristics, Evergrande Property does not need to rely on high leverage for operation, which is particularly stable compared to the weakness of Evergrande Automobile. The existence of these two companies is not just a number game on the balance sheet, their status as Hong Kong-listed companies has provided a ray of life for the group - through this part of the overseas shares, it is possible to raise valuable funds for debt repayment. But when a complex debt relationship is involved, how can it all be so simple?
Turning to another key asset, Anji***, an offshore company registered in the Cayman Islands, controls Evergrande's core assets in China through a series of complex holding relationships. From real estate to song and dance troupes, its tentacles extend to a wide range of industries, but the harsh reality is that although the nominal majority shareholder owns many assets, in reality there are very few assets at their disposal. A chain of debts has frozen the equity of these companies, and although the Supreme People's Court's pilot opinion gives the Hong Kong winding-up order legal effect on the mainland, it does not seem to be able to do anything about the frozen assets.
At this moment, Evergrande Group is not only facing a simple inventory and realization of assets, but also a tug-of-war about legal effect, the interests of creditors and the survival of the group. The 100% stake of Anji ***, although it sounds eye-catching, has become a beautiful but difficult to honor empty check under the iron fist of creditors. When EvergrandeThe group's assets were lifted layer by layer, and the public gradually saw the tip of the iceberg behind this asset inventory. Evergrande's assets, although among the best, are also like a mirror, and they will be dispersed when touched.
These assets have long been in name only in the financial turmoil, and the cold palms of creditors have firmly grasped these so-called pricesValue. However, although the Opinions on Launching a Pilot Project on Recognising and Assisting Bankruptcy Proceedings in the Hong Kong Special Administrative Region give a cross-border effect to the Hong Kong winding-up order, it cannot easily untie the shackles of freezing these assets.
While all eyes are focused on these conspicuous assets, it cannot be ignored that Evergrande Group has so many assets at home and abroad that each piece may become the object of recourse by creditors. However, the freezing of assets makes this game even more complicated. The fate of assets after liquidation is no longer just a simple legal issue, but a battle for wealth, power and survival. And the assets controlled by Anji ***, although they are the lifeblood of Evergrande, have also become unpredictable.
In the process of inventory and liquidation, every step is full of thorns. Where will Evergrande's assets go? Can they actually be liquidated to pay off debts? Or is it just quicksand in this financial storm, within reach but prohibitive? a striking focal point.
In the face of flashy financial statements and huge market capitalization figures, foreign creditors may have been full of hope, but the reality is cruel when the hammer of liquidation is smashed. First of all, it is important to understand that in the winding-up sequence, the preferential creditors are at the top of the food chain. Because it involves the hard-earned money of employees, taxes and the basic security of society. These claims are protected in a way that no venture capital can shake.
The so-called "guarantees" held by Evergrande's overseas creditors are often only guarantees from affiliated companies rather than substantial property mortgages. The actual value of such a guarantee at the time of liquidation may be like a grain of sand in the hand, gradually slipping away in the wind. Ordinary unsecured creditors, they are like travelers in the desert, looking at the blue sky and white clouds, but they can only wait for a nectar that will come at an unknown time.
As for those shareholder claims, they are like phantoms in the desert, which seem to be within reach, but in fact they are out of reach. The money that Boss Xu privately lent to Evergrande may be like his chips in the casino, and he can only reluctantly recover it in the end. Behind all this is the market value of less than 3 billion yuan, a figure that sounds quite impressive in theory, but in the face of the solid firewall of preferential debt, it seems so insignificant.
In the face of such a reality of repayment, the situation of foreign creditors can be described as precarious. Even with a market value of 3 billion yuan, after deducting the cost of liquidation and preferential claims, I am afraid that there will not be even slag left. They are not only faced financiallyLosses, more canIt can be a time-consuming and laborious battle to get bogged down in a lengthy legal battle, and there is little hope of victory.
In this transnational debt recovery drama, each character has their own role-playing. Preferential creditors sit in an unshakable position; secured creditors and unsecured creditors, whose roles are complex and awkward, sometimes like aristocrats, sometimes beggars; As for shareholders, especiallyIt's like Boss XuSuch insiders are more like gamblers, whose fate hangs by a thread and is subject to the rules of the game.
In this game, the cards of foreign creditors seem to be doomed, and they are facing not only the problem of repatriation of funds, but also complex legal processes and an uncertain economic environment. Although the future is uncertain, this scene is a reminder to every participant in the market:Behind the glamorous, risk and responsibility always go hand in hand. And this is also the unchanging truth of the capital market.