What’s your comment? A: the risk of Evergrande group mainly comes from its poor management and blind expansion.
Guangdong Provincial People’s Government interviewed Xu Jiayin, the actual controller of Evergrande.
Guangdong Provincial People’s government agreed to send a working group to Evergrande real estate group.
In addition, according to Shanghai Securities News, experts believe that Evergrande group’s poor management and blind diversified expansion eventually led to risk outbreak, which is an individual phenomenon.
CBRC: Evergrande’s failure to fulfill its guarantee obligations will not have any negative impact on the banking industry.
Meanwhile, the Guangdong Provincial People’s government agreed to send a working group to Evergrande Real Estate Group Co., Ltd.
The spokesman said that we are concerned that Evergrande group failed to fulfill its guarantee obligations for an overseas bond, which is a case phenomenon in the market economy.
Therefore, this will not have any negative impact on the normal operation of China’s banking and insurance industry..
What’s your comment? A: at the request of Evergrande Real Estate Group Co., Ltd., Guangdong Provincial People’s government agreed to send a working group to Evergrande Real Estate Group Co., Ltd., which is a powerful measure to promote enterprise risk disposal, supervise and urge to strengthen internal control management and maintain normal operation, which is supported by the people’s Bank of China.
The risk of individual real estate enterprises in the short term will not affect the normal financing function of the medium and long-term market.
According to the official website of the cbcirc, the Evergrande risk event will not have any negative impact on the normal operation of China’s banking and insurance industry.
Given the current liquidity situation, the group is uncertain whether it has sufficient funds to continue to meet its financial responsibilities.
According to the official website of the people’s Bank of China, on December 3, the relevant person in charge of the people’s Bank of China answered reporters’ questions on Evergrande.
Financial debt accounts for about one third of the total debt of Evergrande group, with a relatively decentralized structure and a small amount of financial investment.
Most real estate enterprises stick to their main business and operate steadily.
Relevant departments will continue to maintain communication with relevant regulatory authorities in the overseas market, urge overseas bond issuing enterprises and their shareholders to strictly abide by market discipline and rules, properly handle their own debt problems in accordance with the principles of marketization and rule of law, and actively fulfill their legal debt repayment obligations.
Central bank: the risks of Evergrande group mainly stem from its poor management and blind expansion.
Previously, Evergrande announced on September 14 that it had appointed a financial consultant to evaluate its debt status and liquidity, and then appointed Shengde law firm and maples law firm as international and Cayman legal advisers.
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The market has long expected Evergrande’s overseas debt default.
According to the Shanghai Securities News, the reporter learned from people close to the regulatory authorities that the CSRC will also support high-quality real estate enterprises to issue bonds, and the funds can be used for mergers and acquisitions of enterprises in danger.
China has always adhered to creating a fair market environment and steadily and orderly promoting the two-way opening of China’s financial market.
On the evening of December 3, China Evergrande announced that the company had received a notice of repayment of a private placement debt of US $260 million, and the company failed to fulfill its obligation to repay the debt, which may lead to accelerated maturity of the debt.
At the request of Evergrande Real Estate Group Co., Ltd., in order to effectively resolve risks, protect the interests of all parties and maintain social stability, Guangdong Provincial People’s government agreed to send a working group to Evergrande Real Estate Group Co., Ltd.
on December 3, China Evergrande announced on the Hong Kong stock exchange that it was unable to fulfill its guarantee obligation of US $260 million, which may lead to creditors’ demand for accelerated maturity of debt.
At about 8:00 p.m.
Relevant departments will provide support and convenience under the current policy framework for enterprises to remit funds to repay and repurchase overseas bonds.
It is reported that in the past period of time, Xu Jiayin, chairman of Evergrande’s board of directors, raised funds by selling personal equity and assets, raising a total of nearly 10 billion, most of which were used to pay interest on overseas bonds, cashing Evergrande wealth management products, general operation of the group and employee salaries.
We believe that domestic and foreign regulatory authorities will handle relevant matters fairly and impartially according to law.
The group will comprehensively consider its overall financial situation, respect all stakeholders, adhere to the principles of fairness and legalization, actively communicate with overseas creditors and formulate feasible overseas restructuring plans for all stakeholders.
Some Chinese real estate enterprises have begun to repurchase overseas bonds, and some investors have also begun to buy US dollar bonds of Chinese real estate enterprises.
Recently, domestic real estate sales, land purchase and financing have gradually returned to normal.
Evergrande also said in its announcement on the evening of the 3rd that since September 2021, the group has actively evaluated the company’s capital structure and liquidity with financial advisers and legal advisers, explored all feasible schemes, and maintained continuous communication with overseas creditors.
According to CCTV news, the Ministry of housing and urban rural development expressed support for the Guangdong provincial government to send a working group to Evergrande.
Subsequently, the Guangdong Provincial People’s government, the people’s Bank of China, the China Banking and Insurance Regulatory Commission, the official website of the China Securities Regulatory Commission and the Ministry of housing and urban rural development successively released news to respond to Evergrande’s risk event.
As early as the end of September, the company failed to pay the interest on an overseas bond in time, triggering a one month grace period.
After China Evergrande announced that it was unable to fulfill its guarantee liability on the Hong Kong stock exchange, the information on the website of the Guangdong provincial government showed that the Guangdong Provincial People’s government was highly concerned about it and immediately interviewed Mr.
In view of the current liquidity situation, the group is not sure whether it has sufficient funds to continue to perform its financial responsibilities.
According to the website of the CBRC, the reporter of the China bank insurance news immediately interviewed the press spokesman of the CBRC on Evergrande’s failure to fulfill its guarantee obligations for overseas bonds.
to supervise and promote enterprise risk disposal, strengthen internal control management and maintain normal operation.
Xu Jiayin, the actual controller of China Evergrande group that night.
In recent days, Evergrande communicated with the creditor to negotiate the extension and provide collateral, but the two sides failed to reach an agreement.
The overseas dollar bond market is highly market-oriented, with mature investors and strong screening ability.
The central bank expressed support for Guangdong Province’s sending a working group to Evergrande, saying that “the risk of individual real estate enterprises in the short term will not affect the normal financing function of the medium and long-term market.” the central bank said that the recent domestic real estate sales, land purchase and financing have gradually returned to normal, and some Chinese real estate enterprises have begun to repurchase overseas bonds, Some investors also began to buy US dollar bonds of Chinese real estate enterprises.
The CSRC will continue to give full play to the market financing function, support the reasonable and normal financing of real estate enterprises, and promote the steady and healthy development of the capital market and the real estate market.
According to people familiar with China business, Evergrande’s private placement debt with a total amount of US $260 million accounts for less than 0.5% of the company’s total debt, and the creditors are mainly overseas funds.
In the next two or three months, the company paid several interest on US dollar bonds.
The Guangdong Provincial People’s government attached great importance to and interviewed Evergrande.
According to the news released on the official website of the CSRC, the operating financial indicators of bond issuers of housing related listed companies are generally healthy, and the spillover impact of Evergrande risk event on the stable operation of the capital market is controllable.
There are also clear legal provisions and procedures for the handling of relevant issues.
to urge and promote enterprise risk disposal, strengthen internal control management and maintain normal operation.
We will continue to cooperate with the Guangdong provincial government, relevant departments and local governments to resolve risks, maintain the steady and healthy development of the real estate market and safeguard the legitimate rights and interests of housing consumers.
This means that Evergrande’s overseas debt has defaulted for the first time.
The cbcirc will reasonably issue real estate development loans and M & A loans, and increase support for affordable rental housing.
Evergrande has just disclosed the announcement that it may not be able to fulfill its guarantee liability.
Relevant people said that the Guangdong Provincial People’s government sent a working group to Evergrande, which is conducive to resolving Evergrande’s risks, ensuring the delivery of Evergrande’s buildings and protecting the legitimate rights and interests of home buyers.
