Since Top Shine Global, one of Evergrande's offshore creditors, filed an application to liquidate Evergrande in June 2022, Evergrande's liquidation hearings have been postponed seven times. On 29 January 24, the High Court of Hong Kong issued a winding-up order against Evergrande Group. The judge said that Evergrande's debt restructuring plan had not made substantial progress for a long time, and the company was insolvent, so it formally ordered Evergrande to be liquidated.
Evergrande's liquidation marks the end of the 20-year era of flowering and the bursting of China's real estate bubble. According to incomplete statistics, more than 50 Chinese real estate developers of considerable size have defaulted, and tens of thousands of people in the industry have lost their jobs.
Generally speaking, it will only be liquidated if it cannot come up with an asset restructuring plan, and the Hong Kong court issued a winding-up order, indicating that no one will save Evergrande after the thunderstorm, or that it cannot be saved.
There have always been people fooling ** to save Evergrande. Impossible to save. The reason is very simple, most of the local governments rely on transfer payments, and the three-year epidemic and the decoupling of China and the United States have generally made local finances even worse. **There is not so much money, after all, money is needed everywhere, and it takes a lot of money for the army to prepare for war** upgrades, stimulate the economy, etc. Of course, it is possible to print money, but it is impossible to print money endlessly, and there is a degree, otherwise it will be too easy to manage the economy.
There are also people who dream of real estate**, which is impossible speculation. It is not uncommon for the transaction volume and housing prices in first-tier cities to fall, and it is not uncommon to see the news of halving. In order to stabilize the property market, Beijing and Shanghai have introduced preferential policies, such as Beijing's "down payment ratio for the first house is reduced to 3 percent, and the loan term is extended to 30 years" and Shanghai's "down payment ratio for the first house is reduced to 3 percent, and the minimum down payment ratio for the second house is not less than 40%". Little success.
The reason is simple: if you can afford to buy a house, you have several houses, and those who can't afford to buy a house can't afford it. What's more, the economy is not good, the people have no money, just look at the deserted shopping malls.
Evergrande fell, whose fault is it?
Is Xu Jiayin's fault? Of course, Brother Belt is very wrong. But Brother Belt is just a real estate businessman, making money is the belief of a businessman, drilling loopholes to make money comes quickly, and few businessmen will refuse. Cats are definitely going to steal fish. Xu Jiayin is a cat, and it is the responsibility of the regulatory department to watch over the cat. Who gave Brother Belt the opportunity to keep taking out loans from the bank for so many years? Xu Jiayin has confessed that he has bribed some bank presidents by tens of millions of yuan and borrowed hundreds of millions of dollars from banks, and that the money borrowed by Evergrande has now become bad debts of banks, and taxpayers will bear the consequences.
It is impossible for Xu Jiayin's tricks to be unknown to the people in the regulatory department. These people are all monkey spirits, and they are also very informed. But why didn't the regulators take active action until Evergrande couldn't hold it back? The reason is very simple: it's not that I can't manage it, but I don't want to manage it and pretend to be blind. There are many people in officialdom, because you want to do things, it is easy to offend people, in addition, if you fail to do things, it will affect the future, it is better not to do things, after all, you will not make mistakes if you don't do things. If you do 10 things, 9 are right and 1 is wrong, and others often only remember the one you are wrong, and ignore that you have done 9 things right, this is the root of human inferiority. When many people in the regulatory department, especially the high-level people, are messing around in a large area and even realizing power, there is a regulatory failure, and Evergrande's thunderstorm is only a matter of time.
Also, why do localities** allow real estate developers to sell off-the-plan properties? The reason is to learn from Hong Kong's experience in selling off-plan properties. However, the practice in Hong Kong is that if there is a problem with the real estate developer, the bank and the real estate developer will go to court, rather than the ordinary people who buy the house and the real estate developer, and the bank will continue to ask the people to pay the mortgage. The mainland only learns from Hong Kong to sell off-plan properties, not Hong Kong's supervision, who made this decision?
A psoriasis phenomenon in the field of Chinese governance is that the problem has existed for a long time, and no one says it, let alone acts, until dozens of people die or the money is lost, and the above begins to pay attention to it, so they hold meetings to express their attitudes, issue documents, introduce measures, and catch a few typical examples. For a long time, after a while, there was a resurgence.
Hegel famously said that the only lesson that mankind can learn from history is that it has learned nothing from history.
Woohoo, poor leeks who bought a house with their hard-earned money and suffered a ruined situation, had nowhere to redress their grievances, and the bank still collected debts every day.