Yesterday, Evergrande was issued a winding-up order by the Hong Kong court, and this news once detonated the industry's **. Evergrande's three listed companies, namely real estate, automobiles and property, were also suspended yesterday. This means that Evergrande's previous one-year intermittent defense has failed to prevent the liquidation from entering the substantive process. In order to prevent the liquidation, Evergrande found various ways to defend and negotiate with creditors, but as Professor Xu entered, the strength of the defense became weaker and weaker.
In the face of the unfavorable situation of liquidation, Evergrande Sean came out to speak out with **, the company will continue to defend, and the main task in the future is to ensure the delivery of the building, and the company will continue to focus on this. This rhetoric is just to listen to the words of the king, and after listening to the words, it is inevitable that Evergrande will be liquidated next.
Along with the news of Evergrande's liquidation, there is also a judicial news:Starting yesterday, the civil and commercial judgments of Hong Kong and the Mainland will be mutually recognized by the courts of the two places. This news constitutes a second blow to Evergrande. Because the previous winding-up petition was at most recognized in Hong Kong and overseas, the vast majority of the assets of real estate companies were in China and could not be enforced. Therefore, don't look at the previous liquidation of a number of private real estate companies, but the symbolic meaning is greater than the actual effect, mainly seriously damaging the goodwill of the real estate enterprises. Does this mean that the assets of private real estate enterprises, which could only be liquidated in Hong Kong and overseas before, can now be extended to the mainland? The answer is no. This is because the mutual recognition agreement signed by the courts of the two places clearly excludes bankruptcy and winding-up cases, and directly says that it is not applicable.
However, there is an exception, that is, the three cities of Shanghai, Shenzhen and Xiamen are retained as pilot cities, and these three cities can partially enforce the assets of enterprises involved in liquidation cases. In other words, Evergrande's assets in Shanghai, Shenzhen, and Xiamen are very likely to be applied for enforcement by creditors next. The assets of these three cities do not account for a large proportion of Evergrande's total assets, and there may be more assets in Shenzhen. Overall, however, the impact will be limited, even if all mainland cities recognise the Hong Kong court judgment. Now Evergrande's core high-quality assets are in the hands of the special teams to ensure the delivery of buildings, even the judiciary does not have much disposal authority, and the priority is to ensure the delivery of funds, followed by financial institutions, and then to creditors from all walks of life. Evergrande's liquidation is still an epoch-making event in the real estate industry, the former giant has gone into liquidation, and there will be more risky private enterprises on the road of Evergrande in the future. It has been 2-3 years since real estate companies defaulted one after another in 2021, and it is time to speed up debt clearance, so that the real estate industry can complete adjustment and reshaping as soon as possible. Where Evergrande will eventually go is what everyone is concerned about. Evergrande's is different from other real estate companies in that its scale is large enough to have a great impact on the social side, otherwise it can be directly delisted like Sunshine City and Oceanwide Holdings. Evergrande's task for the next long time is to ensure the delivery of the building, as long as most of this task is not completed, it will not go directly to bankruptcy liquidation. However, Evergrande has no future, this is ironclad.