Is it true that central enterprises injected 600 billion yuan into Evergrande?

Fake, it's a rumor. There is no official confirmation at this time. However, due to its wide reach, this possibility exists.

In order to solve the payment problem of Evergrande wealth investment products, Evergrande announced a total of three payment plans for investors to choose from, namely cash installment payment, physical asset payment and purchase balance payment. Evergrande (formerly known as Evergrande Financial Services) has also seen its wealth surge by 40 billion yuan, which may seem like a huge number, but it is only a fraction of Evergrande Group's current liabilities. According to public data, as of the end of 2020, Evergrande's total assets were trillion yuan and total liabilities were trillion yuan, accounting for about 85% of its total assets.

Its current liabilities are trillion yuan, that is, trillion yuan will be repaid within one year.

In the face of debt problems, in March last year, Evergrande began to implement the development strategy of "high growth, scale control, and debt reduction", saying that it would use the greatest determination and greatest strength to achieve a significant reduction in debt through high sales growth and strict control of the scale of land reserves. As of the end of June this year, Evergrande's interest-bearing liabilities have fallen to about 570 billion yuan, a significant decrease of nearly 300 billion yuan compared with the peak of more than 870 billion yuan last year. However, this debt scale is still among the highest in the industry.

Why is Evergrande suddenly facing an existential crisis?

Evergrande's problem boils down to a major misjudgment by policymakers on the development trend of the real estate industry.

In the past 20 years, the rapid development of real estate is a product of the times, and it is a by-product of China's large-scale urbanization. Especially since 2016, after the high-level banner clearly proposed "housing not speculation", this is also a clear signal of the end of the real estate era.

Evergrande is still crazy to take land after 2018, and even increase leverage (debt) to take land - this is a very speculative decision, in the view of Evergrande decision-makers (in fact, it is also the consensus of the head enterprises in the real estate industry), although the era of China's real estate is over, there should be a ** era in theory. In the era of intensified competition, we should follow the law that the strong will always be strong and the weak will always be weak. Evergrande is desperately trying to take land to do large-scale, isn't it just to make itself the strong man who is "strong and strong"?

However, no one expected that from the end of 2020, the state's heavy crackdown on real estate would come so fiercely.

I don't think so, I'm afraid that I will be shared by Evergrande executives again.

Dear, hello, according to your question to provide you with the following, for reference only: after inquiry, the situation is as follows: This is just speculation, not true information Oh On August 10, it was reported that Pearl River Investment, Guangzhou Urban Investment and Vanke, Poly and other central enterprises are negotiating with Evergrande and will inject 600 billion yuan into Evergrande On the same day, Evergrande Automobile and Evergrande Property also issued an announcement that the company is contacting several potential independent third-party investors ** related to ** some of its assets, including but not limited to ** Partial interests in China Evergrande New Energy Automobile Group**** and Evergrande Property Group****, listed subsidiaries of the Company.

As of the date of this announcement, no specific plans or formal agreements have been finalized or entered into. In addition, according to Reuters on August 9, people familiar with the matter revealed that Evergrande Group is negotiating with state-owned and private enterprises to take a stake in its new energy vehicle and property management business.

Evergrande is a private enterprise, not a state-owned enterprise. At present, Evergrande's largest shareholder should be Xu Jiayin, not ** or the State-owned Assets Supervision and Administration Commission, so it must be a private enterprise.

The time when the company was founded

Evergrande should have been established in 1996, the founder is Xu Jiayin, the first to want to start in Guangzhou Evergrande Jinbi Garden, so Evergrande's initial base camp is Guangzhou, and later the group headquarters moved to Shenzhen. The main body of individual enterprise investment is not **, it is all personal asset investment.

Personal investment is owned by individuals, Evergrande enterprises are unincorporated economic organizations, and now the responsibility is a sole proprietorship, and the main body of asset investment is invested by personal assets is an individual enterprise. At present, after 20 years of development, Evergrande has developed into a Fortune 500 enterprise integrating real estate, health, tourism, culture and sports.

Sales in 2018 are expected to reach 600 billion yuan, and there are currently more than 500 projects in 180 cities across the country. Evergrande industry is also relatively large, in terms of sports, Guangzhou Evergrande football team is the seventh consecutive champion of the Chinese Super League. It is also the most important business card of Evergrande.

In terms of non-real estate, Evergrande has also developed Evergrande Children's World, Evergrande Health Valley, which is suitable for children and the elderly.

Will save for the following reasons:

1.Evergrande itself has a large number of employees, and there are many enterprises related to Evergrande and a huge number of employees across the country, and the collapse of Evergrande means that these people will be unemployed, and they are all a family behind them.

2.Evergrande currently owes a lot of unpaid merchant payments. If Evergrande goes through the bankruptcy process, the merchant can only get back a small part of the money.

The large ** merchants are better, and the small and medium-sized ** merchants may be on the verge of bankruptcy because they cannot get the payment, so the employees of these ** merchants will also face unemployment.

3.Bank loans owed by Evergrande.

It wasn't all paid off either. If Evergrande fails, it may lead to bad debts in bank loans.

adversely affects the stability of the financial system.

4.Many people who have bought Evergrande pre-sold houses have not yet lived in new houses, if Evergrande collapses, they may face a real unfinished, what should they do if they buy a house, even if the prepaid money is refunded later, it has taken a long time, and the cost of these wasted time is irreparable.

Therefore, if Evergrande really reaches the situation of bankruptcy, it should be saved. And it is certain that the central enterprises will definitely go to the rescue, through the State-owned Assets Supervision and Administration Commission.

All kinds of subordinate enterprises took over the shares of Evergrande's various assets. In fact, this is not only to save Evergrande, but also to save the people.

Extended information: Evergrande is the largest real estate development enterprise in the country, with sales of more than 700 billion yuan in 2020, ranking second in the country after Country Garden. At the same time, in the latest announcement of the 2021 Fortune 500 companies, Evergrande ranked 122nd.

In terms of the scale of the entire group, Evergrande is already a giant.

Enterprise, such a company is indeed a bit too big to fail. The reason why Evergrande has fallen into this situation is inseparable from Boss Xu's excessive use of debt to do large-scale. Anyone who has studied finance knows that enterprises can quickly expand the scale in a short period of time by using debt funds, but the disadvantage of this is that the financial risk is very large, and it cannot be seen when there is no accident, as long as there is a link that is not handled well, it will lead to an emergency across the board.

In the second half of 2020, the state began to strictly control the excessive use of debt funds by real estate companies to do large-scale, because it was found that the financial risk was already very large, and if it did not take action, it may not even have a chance to make a move in the future.

Evergrande's total assets are trillions, with annual sales exceeding 600 billion, cumulative tax payments exceeding 230 billion, and charitable donations exceeding 12 billion.

Assets refer to the resources that are owned or controlled by the enterprise and are expected to bring economic benefits to the enterprise as a result of past transactions or events. Anything of commercial or exchange value owned by any business entity, business or individual. Assets can be divided into current assets and non-current assets according to their liquidity (turnover and liquidity of assets).

Extended Materials. In 1999, Evergrande Real Estate stood out from more than 2,000 real estate companies in Guangzhou and became one of the top 10 real estate companies in Guangzhou. Since 2006, the company has been expanding rapidly from Guangzhou to more than 20 major cities in China, such as Shanghai, Tianjin, Wuhan and Chengdu. In 2009, the company was successfully listed in Hong Kong, becoming the domestic real estate enterprise with the highest market value in Hong Kong.

In 2013, the company's sales exceeded 100 billion yuan for the first time. In 2015, on the basis of further consolidating the main business of real estate, the company expanded diversified industries such as cultural tourism and health preservation. In 2019, the company officially completed the diversified industrial layout, forming an industrial pattern based on people's livelihood real estate, cultural tourism and health preservation, and new energy vehicles as the leader, ranking 138th in the world's top 500.

On August 31, 2021, in the 2021 semi-annual report released by China Evergrande, China Evergrande admitted that some payables related to real estate development were overdue, resulting in the suspension of some of the company's projects, and the company will take a series of measures to alleviate the problems faced.

Among them, the group headquarters abolished the regional management and supervision division of the group's comprehensive management center, and its business and personnel were accordingly transferred to the regional company of the real estate group. The bidding and procurement department and the budget decision-making department of the real estate group regional company were merged into the procurement budget and final accounts department; The Investment Department and the Capital Department were merged into the Investment and Financing Management Department; The marketing department, brand department and after-sales service department of the provincial company were merged into the marketing brand department; The Project Engineering Department and the Development Department were merged into the Project Engineering Development Department. Complete the merger of the corresponding institutions and personnel adjustment before November 30, 2021.

Evergrande Real Estate GroupNot a state-owned enterprise.

State-owned enterprises, or state-owned enterprises.

or state-owned enterprises.

In international practice, state-owned enterprises only refer to enterprises invested or controlled by a country's **** or federation or Lu Na**; In China, state-owned enterprises also include enterprises controlled by local ** investment. The will and interests of the state-owned enterprises determine the behavior.

State-owned enterprises in China refer to non-corporate economic organizations whose entire assets are owned by the state and registered in accordance with the Regulations of the People's Republic of China on the Administration of Registration of Enterprise Legal Persons. It does not include a wholly state-owned company in a limited liability company.

The main body of asset input is the state-owned asset management department, that is, the state-owned enterprise. Evergrande Real Estate is a joint-stock system, and the main investor is not **, so it is not a state-owned enterprise.

Evergrande Group is not a Chinese enterprise, but an enterprise specializing in Chinese.