Chinese administration is reviewing Evergrande's assets

As long as Evergrande has the Swedish Saab relics, the company will remain on our radar screen. The reports are dramatic, but apparently the administration is still sticking to the hard landing principle. Bankruptcy should be avoided, it would have a fatal signal effect for the Chinese real estate market and the Evergrande competitors. Almost all of them are also struggling with massive financial problems.

China Evergrande

$ 13 billion in outstanding payments

Evergrande misses payment date after payment date for domestic and foreign bonds. But the situation is even more dramatic for suppliers and partners, who are also waiting for instructions. With some pragmatism, the administration has assigned payment claims to a single court. There, 24 lawsuits accumulated between August 9 and December 367. There are said to be pending proceedings worth US $ 13,2 billion, such as the Financial Times reported.

Since the Evergrande Group's real estate sales collapsed at the same time, a race for the cash in the accounts is now beginning. The court distributes according to its own judgment, the largest creditors are the state banks, which Evergrande once showered with loans and thus helped the speculative bubble on the way.

Just as the state once gave, it is now taking it again. The administration has begun court recollecting land that Evergrande acquired but did not develop within the prescribed time limit.

Review of assets

In principle, the Evergrande group is nationalized a little more every week. Beijing has sent another commission to the company's headquarters to collect the assets check target. The trigger is the company management described as chaotic and Beijing's dissatisfaction with the crisis management. The audit also extends to founder Hui Ka Yan's private assets.

The founder is said to have received around US $ 2009 billion in dividends from the highly indebted group since 8. The commission is to help uncover hidden assets and ultimately decide whether government funds are needed to clean up the group.

Evergrande already has a state risk management committee on board and can be considered state-run. Even if nobody will officially say or write that.

Meanwhile, the bride show in Trollhättan goes into the next phase. NEVS presents itself from its best side and lets secret insights in the development center too. Time could be pressing. At some point in the near future, creditors will be able to access the Evergrande Group's international assets. By then, at the latest, there would also be a fire under the roof in the Stallbacka.

7 thoughts on "Chinese administration is reviewing Evergrande's assets"

  • blank

    Is CEO Hui Ka Yan still in China?
    As described in the article, the "private company" is changing into a state company. Isn't it an elegant solution ..., just Chinese. The fact that government funds / loans are lost may (?) Not bother the working Chinese much (?) At all.
    The money isn't gone, it's just somewhere else ;-). An exciting business crime!

    • blank

      Well said.
      Tom already wrote in another Evergrande article (or in his own comment?) That a general socialist economic and political return can be observed in China ...
      Evergrande ran into an open knife here? Nationalizing troubled or bankrupt companies and corporations enables the CCP to act as a savior. That is far more elegant than outright nationalization. That’s also well done. You have to let the CCP do that ...
      In the automotive industry, however, it also harbors risks. If, for example, the schedule for the Hengchis gets completely under the wheels in the course of the maneuver, the VEB Evergrande is not in a good position at all. Really exciting ...

    • blank

      He is in the country. Hui Ka Yan is considered a "good" party soldier and, unlike billionaire Jack Ma (Alibaba founder and currently in Europe), remains true to the official line. At least it seems.

      • blank

        Thanks for the info.
        Let's see how long Mr. Yan (?) Stays in the Reich ...

  • blank

    Let us put an end to this cabaret.
    Death and bankruptcy of Nevs is the only way to….
    Nobody knows that.

    • blank

      That we can bring about the end of NEVS is just as presumptuous as demanding the resurrection of SAAB. No, we will neither manage one nor the other, we are only consumers who can use or decline what is offered. Since there is nothing to buy from NEVS, even the modest scope for influencing consumers as a consumer does not exist.
      What Tom is doing here is reporting on the remains of SAAB, and it's good and informative!

  • blank

    Yes, that's exciting, and thanks to the connection to Sweden and Tom's reporting, there was a deep insight into the Chinese economy.
    It is often written that e-cars have no future and that the turbo is the best anyway ... I think that the e-cars have already made great progress. What bothers me is the dogmatism in the debate. So only electric cars, no nuclear power plants, no lignite, ... etc. As an engineer, I plan the right material for the job at hand. When it comes to cars, I see e-cars for commuters, for suppliers in city centers, and even combustion engines (possibly with e-fuels) and hybrids for long distances, in wintry Siberia ... until the technology is even more mature or other storage media are available.
    And the momentum for alternative vehicles is greater in China than it is in this country. In this respect, the reporting here has broadened my horizons more than in any other media.

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