[Epoch Times October 01, 2021](The Epoch Times reporter Long Tengyun reported) Evergrande’s debt crisis and its impact on China’s real estate industry are still being fermented. The internal documents of Henan Province recently obtained by The Epoch Times reveal that the crisis and chaos in China’s real estate is far more than a Hengda thunderstorm. A large number of people in Henan Province who have lost their fortunes due to unfinished buildings are being forced to defend their rights with a bleak prospect.
China’s real estate market “unfinished” seriously ranked first in Henan
The debt crisis of China’s leading real estate company Evergrande is pushing China’s real estate industry, which is already under the burden of “deleveraging (debt reduction),” into the panic of the bubble burst. And the panic that this brings to the Chinese people is no more than the unfinished building.
The so-called unfinished building refers to the construction that has started but was forced to stop for some reason. In the Chinese real estate market where housing prices remain high and real estate companies are in debt, unfinished buildings have been a thorn in the hearts of the Chinese real estate industry and countless Chinese home buyers for many years.
According to LuMediaPengPai.com’s September 2020 disclosure, on the “Leadership Message Board”, the only national leading cadre message board created by the Party Media People’s Daily Online, there were 7478 messages related to unfinished buildings in 10 years (2010-2020). Complaints, Henan ranked first with 1,765.
The Epoch Times reporter checked recent records on People’s Daily Online’s “Leadership Message Board” and found that in the past year, Chinese people’s complaints about unfinished buildings have soared, especially in Henan Province.
The reporter screened the message records of the “Leadership Message Board” of People’s Daily Online in the recent month (August 29-September 28, 2021). Among the total 185 messages about unfinished buildings, complaints from Henan Province were counted. There are as many as 81, accounting for 43.8%. According to data from surging.com a year ago, in the 10 years before September 2020, there were about 62 complaints about unfinished buildings on the leader’s message board every month, and Henan Province accounted for about 23.6%. In the rapidly increasing number of unfinished buildings, Evergrande real estate has become the subject of the most complaints from Chinese buyers.
The Epoch Times recently obtained a batch of internal documents from Henan Province that also confirmed that the unfinished phenomenon of real estate in Henan Province is very serious, and forced a large number of people to petition to defend their rights.
Exclusive: Chaos in Henan’s property market frequently occurs in large numbers of people defending rights
The Letters and Calls Office of Shangqiu City, Henan Province, on July 9, 2021, reported to the Shangqiu Municipal Party Committee on “Problem Real Estate Letters and Visits”.
The Shangqiu City Letters and Calls Office stated in the document that it had identified “118 outstanding issues in the real estate sector.” This means that only one prefecture-level city in Shangqiu currently has at least 118 unfinished properties with outstanding problems.
The document shows that although the Shangqiu City Government has not been able to address the problem of unfinished buildings, it has not come up with any effective and feasible countermeasures; however, the owners who have petitioned due to unfinished buildings have been analyzed and judged, and “compacting work responsibilities” “Strictly prevent large-scale gatherings of visits.
For example, the document stated at the beginning that “some problematic property owners frequently connect via mobile WeChat groups and plan to petition in Beijing to defend their rights in the near future”, and disclosed 9 cases where owners went to the province or went to Beijing to petition collectively.
The petition report disclosed that “1. The owners of the Xiyuan Community of Zhecheng Union instigated their intention to defend their rights in Beijing in the next few days in the WeChat group, and even threatened to take extreme actions. Wangxiang Li Mouxiao, Shen Mouhua, Li Mouqi in Niucheng Township, and a soldier in Huangji Township responded positively.”
It is worth noting that both mobile phones and WeChat groups are personal belongings or communication tools between individuals; however, the Petition Office did not explain in the document how the owners of unfinished buildings in Shangqiu City were able to obtain the individuals chatting in the mobile WeChat group. Private information.
Exclusive: CCP’s security-maintaining and unfinished building owners are on the blacklist
An internal document issued by the Henan Provincial Letters and Calls Office on March 10, 2021 also confirmed that the Chinese Communist Party regards petitioning owners of unfinished buildings as an important target for stability maintenance, and that various provinces and cities jointly carry out stability maintenance and will “control the petitioning owners locally” and “avoid A large-scale gathering of petitions in Beijing occurred to ensure the social harmony and stability of the capital Beijing.”
The Letters and Calls Office of Henan Province issued the “Stability Control Work Letter” issued by the Letters and Calls Offices in various parts of the province. It disclosed that the Letters and Calls Office of Hebei Province had sent a letter stating that after the chairman of the Huayin Company in Laishui County of the province was investigated, the construction of the project was suspended. The people who built the talent homes and the Swan Lake real estate buyers began to petition Beijing collectively, involving 163 people from 17 provincial cities in Henan Province and the Jiyuan Demonstration Zone.
The “Work Letter” stated that “the 163 personnel are now handed over to you, please attach great importance to this.” The file appended the personal information of 163 Henan owners.
According to the Chinese Communist Party’s official announcement, in June 2019, Laishui County Huayin Company was destroyed by the Hebei Provincial Public Security Bureau as a criminal group. Huayin Group collaborated with Laishui County government officials and businessmen to develop a number of real estate projects that were unfinished. A large number of home buyers had nowhere to ask for help. After petitioning, they were escorted back to their registered permanent residence and suppressed.
The Henan Provincial Letters and Calls Office issued in February this year the stability maintenance documents issued by the letter and visit offices of Zhengzhou, Anyang, Jiaozuo and other cities in the province, showing that owners who purchased illegal villas were also stabilized.
In addition, the “Letter on Letters and Visits” of the unfinished building transferred to the Henan Provincial Letters and Calls Office by the Central Commission for Discipline Inspection and Supervision in June this year indicated that even if the owners of unfinished buildings went to Beijing to petition, they were eventually transferred to the local government by the central government for “stability control”. . The letter disclosed that the Central Commission for Discipline Inspection had forwarded 21 cases of 29 people from Henan Province that involved prominent letters and visits involving “buildings that are unfinished,” requesting “preventing mass incidents.”
On June 23, the Letters and Calls Office of Shangqiu City, Henan Province disclosed in a report dealing with the complaint issues handed over by the Central Commission for Discipline Inspection and Discipline Inspection. “.
Another stability maintenance document in Shangqiu City, the “List of Key Personnel Status”, revealed that the authorities had recorded all the rights protection owners of “problematic real estate” and assigned them to local governments to carry out key stability maintenance.
Analysis: The mainland’s real estate industry has entered a cold winter
These government documents show that the CCP is trying its best to maintain stability for the victims who have purchased unfinished buildings across the country.
But with regard to the precarious Chinese property market and the overall economy, the authorities have been helpless and unable to maintain superficial stability.
In fact, in the eyes of people in the overseas economy and real estate circles, Evergrande, the epitome of the CCP’s debt economy, has come to an end. It is not surprising, especially after the CCP launched the “three red lines” for deleveraging by real estate companies last year.
The “three red lines” issued by the Chinese Communist Party in September last year are: 1. The asset-liability ratio of the real estate company after excluding the advance payment shall not exceed 70%; 2. The net debt ratio of the real estate enterprise shall not exceed 100%; 3. The “cash of the real estate enterprise” /Short-term debt ratio” shall not be less than 1. The purpose of this ban is to reduce the debt and financial leverage of Chinese real estate developers.
Most listed real estate companies exceed at least one of the standards, and Evergrande has stepped on all three red lines.
The “three red lines” have tightened or even cut off the financing channels of Chinese real estate companies, and have become the last straw to crush high-debt Chinese real estate companies.
Current affairs commentator Li Linyi believes that the CCP’s policies have directly led to the rupture of the capital chain of many real estate companies, including Evergrande. “Even Evergrande, one of the leading real estate companies in China, can’t get through. .”
He pointed out, “If the crisis between Evergrande and Chinese real estate companies is the result of debt-driven and land finance (or collusion between government and business); then countless owners of unfinished buildings and upstream and downstream parties involved in the property market crisis are all victims. People have become victims of the CCP’s evil government. What’s worse is that these victims will not only receive government assistance, but will be strongly suppressed by the authorities, or called stability maintenance.”
Editor in charge: Ye Ziming#
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