No other company captured the gold-rush fever in China’s real estate sector quite like Xu Jiayin. As of Monday, the stock-market fairy tale of his Evergrande Group is over.
By Jörn Petring
Kein anderer Unternehmen verkörperte die Goldgräberstimmung in der chinesischen Immobilienbranche so sehr wie Xu Jiayin. Seit Montag ist das Börsenmärchen seiner Evergrande-Gruppe Geschichte.
By Jörn Petring
The automotive division of the China Evergrande Group, Evergrande Auto, has reportedly laid off all its remaining employees. Following a court order, the company is required to file for bankruptcy and undergo restructuring.
By
Evergrande subsidiary Hengda Real Estate is accused of fraudulently issuing bonds and providing false information to the markets. That is why China's authorities have now imposed a heavy fine on the subsidiary and Evergrande founder Hui Ka Yan.
By Redaktion Table
On Monday, the Chinese real estate giant Evergrande has the last chance to submit a restructuring plan. If it fails to do so, a Hong Kong court is set to liquidate the company. However, Beijing is also likely to have a say in the matter.
By Jörn Petring
Since 2020, the Chinese government has strengthened its regulation of the real estate sector and issued “three red lines”, aiming to lower the high debt ratio of real estate companies and reduce the economic reliance on the real estate sector. However, the largest companies failed to reach this target. Reasons include weakening purchasing demand and operational difficulties primarily caused by strongly restrictive policies during the economic downturn.
By Experts Table.Briefings
The bankruptcy of the Chinese real estate developer Evergrande gripped international stock markets in 2021. Protests by desperate Evergrande investors and rescue attempts through e-mobility investments as well as China’s "three red lines" policy followed suit. Read all the important and latest news on China’s Evergrande from the China.Table editorial team.
Evergrande is one of the largest property developers in China. It is currently also the most indebted real estate group in the world. In the fall of 2021, Evergrande was no longer able to come up for its hundreds of billions of dollars in debt. The crisis posed an immense challenge to the Chinese financial and real estate system.
The real estate sector accounts for more than a quarter of China's economic growth. Seventy percent of the wealth of Chinese households lies in real estate. A collapse of the sector could thus lead to sentiments from the public. To counteract the collapse of the Chinese real estate market and the unrest within the population, the Chinese leadership introduced "three red lines" even before Evergrande’s bankruptcy. In addition, Evergrande also invested in the electric mobility sector with Evergrande's subsidiary Evergrande New Energy Vehicle (NEV).
The Evergrande crisis is far from being solved in 2022. After the insolvency announcement and rescue attempts using the subsidiary Evergrande New Energy Vehicle in the field of electric mobility, domestic investors seem to slowly breathe a sigh of relief. Furthermore, the government tried to ease the worries on the real estate market by lowering interest rates at the end of 2021.
