Will Country Garden face the same crisis as Evergrande?

Compared with Evergrande, the crisis faced by Country Garden is more representative, because similar problems are not limited to one enterprise. During this period, the government needs to introduce a series of easing policies more quickly to ease the difficulties of private enterprises and prevent systemic risks.

In the long run, the government has made up its mind to revive market confidence, so the Country Garden crisis is expected to be properly resolved. On July 3 1 day, Country Garden announced that there would be unaudited net profit loss as of June 30, 2023.

In order to ensure the safety of cash flow, the Board of Directors of Country Garden said that the company will take active measures, including but not limited to reducing various operating expenses, speeding up payment collection arrangements, actively expanding financing channels, managing and optimizing debts, and actively seeking guidance and support from the government and relevant regulatory authorities.

Country Garden crisis has already appeared.

In fact, the signs that Country Garden was in trouble had already appeared a few days ago. On July 2 1 day, four domestic and foreign bonds issued by Country Garden fell by more than 20%, and other domestic and foreign bonds also fell to varying degrees.

On July 25th, there were rumors that KPMG had been invited to investigate the balance sheet of Country Garden, as well as rumors about Yang Guoqiang, the founder of Country Garden, and Yang, his successor. Country Garden responded that the rumor about "due diligence through accounting firms" was not true, and Yang Guoqiang and Yang were both working normally at the company headquarters.

Country Garden Service, a Hong Kong enterprise, announced on July 30 that its chairman Yang decided to donate 20% of its shares to Guoqiang Charity Fund (Hong Kong) Co., Ltd. ... This move caused the company's share price to plummet and aroused public concern.