Original title: GF applied for freezing of 132 million funds of Evergrande Real Estate, “Hengda Department” continued to plummet
From the perspective of market performance, every time there are rumors of tight liquidity in the market, China Evergrande will almost always encounter waterloo in stocks and debts. Since 2021, the stock price of China Evergrande has fallen by more than 30%.
In early Tuesday trading, the Hong Kong stock market “Hengda Series” continued yesterday’s decline. As of press time, China Evergrande’s decline has expanded to more than 12%, and it closed down by more than 16% on Monday; Evergrande Motor has fallen by more than 15%, after a sharp drop of more than 20% before; Evergrande Property has fallen by more than 7%; Hengteng Network has fallen by more than 14 %.
On July 19, Evergrande Real Estate Group stated that the project company Yixing Hengyu Real Estate Co., Ltd., a subsidiary of the company’s Jiangsu Provincial Branch, and China Guangfa Bank Yixing Sub-branch project loan 132 million due date is March 27, 2022. For Yixing branch’s abuse of pre-litigation preservation, the company will sue according to law.
On the same day, a civil ruling was widely circulated in the market: Evergrande Real Estate was applied by China Guangfa Bank Co., Ltd. Yixing Branch to freeze bank deposits of RMB 132.01 million or to seal up or seize other properties of equivalent value.
According to the ruling, the applicant China Guangfa Bank Co., Ltd. Yixing Branch has provided a guarantee to the Wuxi Intermediate People’s Court of Jiangsu Province, stating that “the situation is urgent and failure to apply for preservation immediately will cause irreparable damage to its legitimate rights and interests” .
The Yixing branch of China Guangfa Bank Co., Ltd., the party involved in the incident, did not respond positively when interviewed by a reporter from China Business News, stating that “the colleague in charge of Evergrande’s real estate business is not at present, and he may be clear about the specific details.”
Rumors of tight capital liquidity reappear, China Evergrande encounters equity debt Waterloo
Regarding the various rumors of tight capital liquidity surrounding Evergrande Group, Evergrande Group announced on June 30 that it had reduced the company’s interest-bearing liabilities to approximately 570 billion yuan, realizing that Xu Jiayin, chairman of the board of directors of Evergrande, The proposed goal of “at least one red line turns green”.
According to the performance conference in March 2021, Xu Jiayin’s downgrade plan for the next three years is as follows: On December 31, 2021, China Evergrande’s cash short-term debt ratio will reach more than 1, and on December 31, 2022, The debt-to-asset ratio fell below 70%, fully meeting regulatory requirements, and realizing all the “three red lines” turned green.
Everbright Securities pointed out that from the China Evergrande Group’s 2020 annual report, its debt-to-asset ratio, net debt ratio, and cash short-term debt ratio after excluding advance receipts all exceed the “three red lines” requirements, and external financing channels are restricted. Therefore, the repayment of its debts is more dependent on the sales proceeds, and most of China Evergrande’s projects on sale and for sale are located in third- and fourth-tier cities, and it is relatively difficult to recover the funds.
From the perspective of market performance, every time there are rumors of tight liquidity in the market, China Evergrande will almost always encounter waterloo in stocks and debts. Since 2021, the stock price of China Evergrande has fallen by more than 30%. Evergrande’s bonds have also shrunk sharply. Taking “15 Evergrande 03” as an example, the bond has fallen by more than 21% during the year.
.