Home » World » Too big to fail? It is said that when Hengda Xu Jiayin’s private plane flew to Beijing for help, New Zealand: Xi Jinping might say this word… | China

Too big to fail? It is said that when Hengda Xu Jiayin’s private plane flew to Beijing for help, New Zealand: Xi Jinping might say this word… | China


China’s large real estate Evergrande Group is facing a financial crisis. It is rumored that the private jet of the chairman of the group Xu Jiayin flew to Beijing for help yesterday (15th).Picture: Snapshot of the official website of Evergrande Group

China’s large-scale real estate Evergrande Group is facing a financial crisis. It is rumored that the private jet of Xu Jiayin, the chairman of the group, flew to Beijing yesterday (15th). There are rumors that it is likely to seek help from Beijing’s high-level officials. If the Beijing authorities are willing to rescue Evergrande, at least For a period of time, the debt can be temporarily suspended. In this regard, the New York Times pointed out that Xi Jinping is likely to say “no” to Xu Jiayin.

On the 14th, Hengda-related stocks in the Hong Kong stock market almost plunged. Among them, “China Evergrande” closed down 11.87%, “Hengda Auto” closed down 24.66%, and “Hengda Property” closed down 12.01%. In the past year, Evergrande’s stock has fallen by 80%, and Evergrande has confirmed to the Hong Kong stock market that sales from June to August have continued to decline. It is expected that September’s performance will continue to fall sharply.

Evergrande announced that it was trying to sell its assets, but failed to find new investors, preparing to sell the “China Evergrande Center” building in Hong Kong, nor did it find a buyer. According to reports, on September 12, Evergrande Wealth Executive Director and General Manager Du Liang admitted that he had redeemed Evergrande wealth management products on May 31, stating that “the early payment was due to an emergency at home”, and Xu Jiayin has ceased to serve as the manager of Evergrande Real Estate since last month. The chairman, the people said angrily that Evergrande’s executives had already escaped ahead of schedule. Even Xu Jiayin’s two mansions in Hong Kong totaling more than NT$5 billion have been sold to his housekeeper.

Recently, it has been circulated on the Internet that Evergrande will declare bankruptcy on the 20th. In this regard, the National Bureau of Statistics of the Communist Party of China stated that it has noticed the relevant news. According to reports, spokesperson Fu Linghui said that overall, some large real estate companies have encountered some difficulties in their operations. , But the impact on the development of the entire industry still needs to be observed.

The New York Times pointed out that in order to curb the unsustainable debt problem this year, the Beijing authorities have shown greater willingness to let companies fail. Therefore, the CCP government is likely to say “no” to rescue Evergrande, saying that it will be easy to save Evergrande. To make enterprises desperate and believe that they will receive government assistance is tantamount to acquiescing to condone such large-scale debt-raising behavior. On this point, Xi Jinping is likely to say “no.”

However, if a large group like Evergrande fails, it may become the first domino of a Chinese real estate company to fail. “New Times” stated that if Evergrande fails, it will not only arouse a series of reactions in the entire financial system, but also affect it. There are millions of investors, those who buy houses can’t get any compensation, and investors can’t get back their hard-earned money, which may deepen the tears between the government and the people, which is not conducive to the CCP’s rule. Therefore, whether to save or not to save is to Xi Jinping. It feels uncomfortable no matter what.

China’s large-scale real estate Evergrande Group is facing a financial crisis. It is rumored that the private jet of Xu Jiayin, the chairman of the group, flew to Beijing yesterday (15th). There are rumors that it is likely to go to Beijing for help.

If the Beijing authorities are willing to rescue Evergrande, at least for a period of time, the debt can be temporarily delayed. In this regard, the New York Times pointed out that Xi Jinping is likely to say no.

Evergrande Group faces a debt crisis. Picture: Retrieved from Weibo (data photo)

Evergrande Group faces a debt crisis. Picture: Retrieved from Weibo (data photo)

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