Heck, if it's a problem that's unique to a business, that's fineAnd if many companies are in trouble, then we have to explore the cause. The decline of the old real estate company Country Garden is becoming more and more obvious, and it seems that it will only cause a large-scale crisis. But where does the problem come from? Let's take a look at the recently announced Country Garden announcement! See, the master analysts are deeply worried about Country Garden's business situation. Could it be that the tragedy of Evergrande Group is happening again? Looking at the current private real estate market in China, it is really difficult to be optimistic. The data shows that Country Garden's public debt has reached a staggering 143 trillion, even if it is calculated together, it is not necessarily inferior to Evergrande. As the building was about to collapse, Yang Huiyan, who was at the helm of Country Garden, could not sit idly by, she decisively donated 20% of the shares of Country Garden Services and resigned as chairman of several subsidiaries. Although Country Garden has taken due precautions, the reality is not as rosy as expected. The biggest potential risk facing Country Garden at present depends on the following.
However, compared to Evergrande, the quality of its assets seems to be worse, and even its solvency is worrisome. Although Country Garden's debt scale is 1 trillion less than Evergrande's, it is generally believed that Country Garden's hidden danger is more serious than Evergrande's. Why? More than half of Country Garden's projects are located in third- and fourth-tier towns, and due to the relatively low housing prices, the total number of projects is as high as more than 3,000. You know, because the housing prices in the third- and fourth-tier towns are too meager, when the real estate bubble bursts, it may be difficult for those properties to get rid of smoothly in a short period of time. It takes a lot of luck to dispose of these assets!