Title: Greenland Holdings Reveals 7-9 Billion Yuan Loss in 2023, Chinese Stock Market Continues to Decline
On January 31, 2024, it was reported that Shanghai state-owned Greenland Holdings expects a net loss of 7 billion to 9 billion yuan in 2023. The company plans to make provisions for asset impairments of 11 billion yuan to 13 billion yuan, primarily due to a decline in the price of real estate inventories.
Greenland Holdings, a major Chinese real estate company, announced that it expects to achieve an operating income of approximately 360 billion yuan in 2023. However, the company anticipates a net loss attributable to the owners of the parent company of -7 billion to -9 billion yuan in 2023, marking a significant year-on-year decrease.
The company attributed the losses to the continued decline of the real estate market, which resulted in a decline in asset prices. Greenland Holdings stated that it will need to make provisions to prepare for the decline in real estate inventory prices. The deep downturn in the real estate industry for three years has also contributed to a year-on-year decline in corporate revenue.
These revelations come amidst a challenging time for the Chinese stock market. After the Hong Kong High Court recently issued a liquidation order against Evergrande, another large Chinese real estate state-owned enterprise, the stock market fell below 2,800 points. Despite attempts by the Chinese Communist Party to release funds to rescue the market, the stock market continues to experience a downward trend.
Zhang Tianliang, a professor at Feitian University, expressed concerns about the implications of the real estate market’s downturn. He predicted that the financial turmoil in China’s real estate market in 2024 will be more serious than the financial crisis caused by Lehman Brothers in the United States 16 years ago.
In response to the CCP’s “institutional reform plan,” there are reports that three asset management companies will be transferred to China Investment Corporation, while China Huarong was integrated into CITIC Group and renamed China CITIC Financial Assets.
The shifting landscape of the Chinese financial sector has raised questions and concerns about the future stability of the market. Zhang Tianliang warned that the scale of the potential financial collapse in China is a very scary prospect.
As China grapples with economic challenges, the Voice of Hope continues to provide comprehensive reports to inject hope into the country. The reality of the situation in China reinforces the importance of transparency and clarity in reporting.