Liability 2The 4 trillion yuan China Evergrande has previously encountered creditors applying for liquidation, and in order to postpone the liquidation, China Evergrande has repeatedly said that it is ready for a new debt restructuring plan.
However, after struggling to no avail, Evergrande was liquidated on January 29.
Dragged down by this news, Evergrande's share price plunged. China Evergrande's share price fell more than 20%, and Evergrande Auto fell more than 18%. Moreover, Hong Kong stocks China Evergrande, Evergrande Automobile, and Evergrande Property also suffered intraday suspensions.
China Evergrande has filed seven applications for adjournment of the hearing of the petition.
The reason for this effect, according to the Economic Observer, is that a new applicant has entered the bureau - a group of holders of China Evergrande's major offshore bonds of more than $2 billion who plan to join the winding-up petition to seek to wind up the company.
In any case, this is the largest bankruptcy and liquidation of a real estate company in Hong Kong's capital market, and it is also the biggest storm in the inner property so far.
According to an interview with Yicai, China Evergrande can theoretically propose some new restructuring plans, and can also file an appeal, and may cancel or suspend the liquidation order, but under the huge debt pressure, the possibility of a white knight is not large.
Therefore, from a theoretical point of view, China Evergrande's so-called chances of turning around are too slim.
The liquidation of China Evergrande has had an impact on the real estate industry and the upstream and downstream industrial chains, and these problems have been exposed like the tip of the iceberg after the Evergrande thunderstorm.
This time China Evergrande was liquidated, and Huanhuan was most concerned about how the interests of those owners who bought Evergrande houses would be affected. This news is a hot topic today, and in a large number of ** related reports, Huanhuan has extracted some key information about this for everyone.
First, China Evergrande is only the overseas listed entity of Evergrande Group, and it has independent legal entities that are different from other subsidiaries at home and abroad. In China, the development entities of many Evergrande buildings are relatively independent, and overseas creditors have no right to deal with them. Therefore, after the liquidation of China Evergrande, it will have a limited impact on Evergrande Group's business in China, especially in terms of ensuring the delivery of buildings.
Second, according to the domestic policy, under the corresponding conditions, the consumer of commercial housing claims that his right to claim the delivery of the house and the right to claim the return of the price have priority over other creditor's rights. In other words, even if China Evergrande is liquidated, with the blessing of state power, the owner also has priority.
Third, the liquidation of China Evergrande usually involves the liquidation of the company's assets by creditors, which means that the operation and capital flow of Evergrande Group may be restricted, and the capital chain may be worsened, which may affect the construction and completion of Evergrande's projects in China, thereby negatively affecting the interests of the owners of unfinished buildings.
Fourth, Evergrande's housing delivery volume has been close to eighty, and individual projects may be somewhat difficult, but now the country is vigorously promoting the delivery of buildings, and the ** economic work conference held at the end of 2023 specifically pointed out that when deploying this year's economic work, "do a good job in ensuring the delivery of buildings, ensuring people's livelihood and ensuring stability".
This year, it is considered a critical period for the delivery of buildings, and all parties are going all out to promote the work of ensuring the delivery of buildings, which not only protects the legitimate rights and interests of the people, but also has a positive effect on resolving real estate risks and restoring the confidence of buyers. It is hoped that with the joint efforts of all parties, these houses of Evergrande will eventually be delivered.
According to the financial industry, Zhengguan News, China-Singapore Jingwei, Daily Economic News and other reports.