Evergrande will sell part of its shares in the real estate and automobile sectors. What does this mean?

It means that Evergrande is repaying its debts in this way, and the development of Evergrande Group will also be affected.

This is actually a helpless move, because the real estate industry is not good now. Even as a leading enterprise in the real estate industry, Evergrande Group is actively selling assets to obtain sufficient cash flow in this way. Because many properties can't be sold now, Evergrande can't withdraw funds, but Evergrande has a lot of debts at the same time, so it can only get a certain cash flow in this way to avoid a debt crisis.

1. Evergrande is actively selling assets.

As we all know, Evergrande Group is not only involved in the real estate industry, but also in the entertainment industry and automobile industry. While the real estate industry is in recession, other businesses of Evergrande Group occupy a high proportion. Even so, Evergrande needs to save the development of the real estate sector by selling assets, which is a helpless move.

Two. Evergrande needs to actively repay its debts.

I have seen a data before. Evergrande's annual revenue can reach 600 billion, but its current debt has reached more than 900 billion. While the real estate industry is depressed, Evergrande's revenue may be further reduced. Due to the current high debt ratio of Evergrande, in order to avoid debt explosion, Evergrande had to take the initiative to sell its core assets.

Third, Evergrande wants to take the initiative to pay back the money in this way.

As I said above, Evergrande's real estate sales are not ideal at present, and there are also real estate purchase restrictions in many areas. Evergrande was punished for illegal discount before, and Evergrande could not sell the house through discount promotion. It is precisely because of the above comprehensive reasons that Evergrande can only actively repay the money in this way and repay the debt with enough cash. The real estate industry itself is a heavy asset industry, and Evergrande needs to further solve the cash flow problem.