[Epoch Times November 06, 2021](Epoch Times reporter Li Bing comprehensive report) Faced with a huge debt of nearly two trillion yuan, Evergrande Group has been striving to sell some of its assets to raise cash. According to documents from the Hong Kong Stock Exchange, China Evergrande sold Hengteng Network shares on November 4th and 5th, realizing a total of approximately HK$717 million.
After the reduction of Hengteng Network, China Evergrande’s shareholding ratio fell to 22.98%, ranking second largest shareholder, Tencent became the largest shareholder with a 23.9% shareholding ratio.
According to the “China Securities Journal” report, China Evergrande fell 2.54% on November 5 to 2.3 Hong Kong dollars, with a market value of 30.5 billion Hong Kong dollars; Hengteng Network fell 13.25% to close at 2.03 Hong Kong dollars, with a market value of 18.7 billion Hong Kong dollars.
On November 4, at an internal meeting of the Evergrande Group, Xu Jiayin revealed that from January 1, 2016 to June 30, 2021, in five and a half years, several major expenditures of China Evergrande amounted to 5.01 trillion yuan (RMB). , The same below). Among them, the return of the due loan principal amounted to 2.25 trillion yuan, the payment of loan interest was 367 billion yuan, the tax payment was 221.6 billion yuan, the land payment was 963.4 billion yuan, and the construction and installation expenses such as construction and material payments were 973.6 billion yuan.
At present, the debt crisis of Evergrande Group has attracted the attention of the global financial market. Evergrande’s previous semi-annual report showed that as of June 31, Evergrande owed a total of 1.97 trillion yuan (about 300 billion US dollars) to suppliers, creditors and investors. Roughly equivalent to 2% of China’s GDP.
In early October, JPMorgan Chase issued a report stating that Evergrande Group has a large number of hidden debts, accounting for 55% of the actual total debt, and the net debt ratio is higher than 177%, which is greater than 100% of the statement.
Recently, Evergrande Group has been striving to sell some of its assets to raise cash.
The Wall Street Journal cited sources familiar with the matter on November 5 and revealed that China Evergrande Group raised more than US$50 million through the sale of two privately-owned planes last month, bringing in much-needed cash for the company to help it repay its debts.
China Evergrande stated at the end of September that one of its subsidiaries planned to sell nearly 20% of the shares of Shengjing Bank, headquartered in Shenyang City, Liaoning Province, to “Shenyang Shengjing Financial Holding Investment Group.” After the transaction is completed, the state-owned enterprise as the transferee will become the largest shareholder of Shengjing Bank.
According to Reuters on October 15, citing two people familiar with the matter, Chinese developer Yuexiu Real Estate has withdrawn from a US$1.7 billion acquisition of the Hong Kong headquarters of China Evergrande Group due to concerns about Evergrande’s poor financial situation.
On September 23, Hong Kong Chinese Real Estate issued an announcement stating that the group has obtained the authorization of the board of directors to sell all the remaining shares of China Evergrande in the next year. Liu Luanxiong, the major shareholder of Chinese Real Estate, has a close relationship with Xu Jiayin, the founder of Evergrande Group, and is one of the first Hong Kong tycoons to support Evergrande Group’s listing in Hong Kong.
Editor in charge: Lin Yan#
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