Evergrande is bankrupt, and overseas creditors may not compensate! China's real estate market is in full swing
Evergrande will eventually go bankrupt, and foreign creditors may not get compensation! China's real estate winter begins.
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China Evergrande's liquidation and liabilities.
After several delays, China Evergrande finally received a hearing of its bankruptcy petition by the Supreme Court of Hong Kong on January 29, and was finally liquidated by the court. According to the information of various parties, China Evergrande Group's external liabilities are as high as 165 billion yuan, including three parts: first, a total of 191 yuan bonds$4.8 billion; The second is to repurchase a total of 163 RVP sharesHK$500 million; The third is the misappropriation of Evergrande real estate** totaling 13.4 billion yuan. At present, the market price of Evergrande 100 yuan overseas has fallen to 1around $5, while the share prices of its three Hong Kong companies have fallen to 0Less than $5. Although employees of China Evergrande vigorously resisted the liquidation, the court finally ruled after creditors, who had long lost faith, failed to agree on a restructuring.
The bankruptcy liquidation process of China Evergrande has touched people's hearts.
After the execution of the liquidation order, China Evergrande will suspend its business activities, cannot dispose of all the assets it owns, and cannot change the information it holds, and the company** will therefore be frozen. Secondly, the court will appoint a liquidator to supervise and enforce the liquidation proceedings. It is clear why China Evergrande's management is so adamantly reluctant to liquidate. For ordinary employees, bankruptcy means they will have to change jobs, and managers who have previously worked at Evergrande will have a hard time finding another job.
At present, Xu Jiayin is still the de facto controller of China Evergrande, holding 5978% shareholding, the company is headquartered in the Cayman Islands and is incorporated in Cayman. The second largest shareholder is Junrong Group, and Xu Jiayin's wife, Ding Yumei, holds 599% of the shares. The third largest shareholder is an individual with a shareholding ratio of only 001%。It can be seen that, with the exception of Xu Jiayin and his wife, China Evergrande's public shareholding is very dispersed.
China Evergrande Real Estate Bankruptcy Analysis.
The psychological impact of China Evergrande's bankruptcy is far greater than the actual impact, mainly because it has no specific field of activity of its own, but only serves as a control platform. Most of the properties in the Evergrande system are owned by Hong Kong-based China Evergrande, which consists of two parts: the first is Evergrande Real Estate and Evergrande Group, of which China Evergrande owns Evergrande Real Estate 5171% of the shares, Evergrande Automobile 5854% of the shares. Evergrande Auto is already heavily indebted and struggling to stay afloat. Evergrande Real Estate is the most high-quality real estate project in China Evergrande, which does not require high leverage due to its industrial nature. Both companies are overseas properties issued on the Hong Kong Stock Exchange and can repay debts with ** shares. 2.Based on the Group's business divisions, including Guangzhou Chaofeng Real Estate Company and Guangzhou Kailong Real Estate Development Company, and through the above-mentioned subsidiaries, it directly owns most of Evergrande's domestic industries, including real estate, sports, Internet, high-tech and dance halls. However, because Angel has very few executable assets and is not a listed company, it cannot be traded on the exchange. Therefore, after the bankruptcy of China Evergrande, its subsidiaries and grandchildren can continue to operate normally.
Foreign debtors will not receive any compensation?
As for China Evergrande's offshore debtors, it is very likely that they will not receive any compensation. Second, in terms of secured loans, China Evergrande has a small number of external loans, and most of them are provided by group companies, so there is virtually little room for enforcement; Secondly, this is an unsecured credit and a general credit, and Mr. Xu borrowed money from China Evergrande in his personal name. However, China Henderson now owns Evergrande Property and Evergrande's assets, totaling less than 3 billion yuan. Even if you don't count the ** of the stock price and the loss of cash value after the suspension, I'm afraid that 3 billion yuan is not even enough for liquidation costs, let alone others. As a result, it is unlikely that the foreign debtor will receive a penny.
Private preview. China Evergrande's announcement of bankruptcy has aroused heated discussions and concerns from all parties. The author believes that the collapse of Evergrande is not just a matter of one company, but is related to the stability of the entire financial system and market. On the one hand, the occurrence of this incident has sounded the alarm for enterprises, requiring enterprises to operate prudently and not to excessively use high-leverage operations, and at the same time, it also requires relevant management departments to strengthen the supervision of relevant enterprises to prevent the recurrence of such accidents. In addition, in order to minimize potential financial losses, appropriate financial instruments should be employed and adequate risk prevention methods should be employed. Through the in-depth study and reference of this case, it is hoped that it will have certain reference significance for the future operation and financial management of Chinese enterprises.