Will Evergrande Real Estate be affected?

The lightning explosion of Evergrande Group has lasted for two months, and the total debt owed is as high as 1.97 trillion. If we count about $20 billion in overseas bonds, Evergrande's total liabilities are nearly * * * 2 trillion. Due to the huge debts, Evergrande faces the result of bankruptcy and reorganization.

Some people began to worry that Evergrande is a giant company in the real estate industry, and real estate is closely related to the financial industry. If the matter of Evergrande is not solved properly, it will lead to adverse events, which will have a very bad impact on ordinary people who bought Evergrande houses and workers closely related to Evergrande industry.

A few days ago, relevant departments held a meeting to explain this issue of Evergrande. The state believes that this Evergrande crisis is only an example and cannot be generalized. There are more than 65,438+10,000 real estate enterprises in China, among which Evergrande is only one, with a market share of only 4%. Therefore, whether Evergrande collapses or not has little impact on the entire huge real estate market. At present, the whole real estate industry is stable and healthy, so the regulation policy on real estate will not be relaxed at this stage, which is the key point.

The deepest and most fundamental reason for Evergrande's thunder explosion mainly comes from the wrong strategy of the top management. Evergrande's management failed to manage and operate in time according to the changes in the external situation, but blindly diversified and aggressively expanded, which led to serious deterioration of the group's operation and finance, and finally broke out financial risks. This has nothing to do with the state's strict regulation of real estate.

What does financial risk mean?

In other words, the consequences of a company (usually financial institutions or related real estate) caused by poor management may not only pose a threat to the survival of the company, but also pose a threat to the stable operation of the entire financial system. Once a chain effect occurs, systemic risks occur and the financial system fails, it will inevitably lead to the chaos of the whole social and economic order and even lead to a serious political crisis. .

For specific examples, please refer to 1930, the financial crisis that triggered the Great Depression in the West, or the financial crisis that broke out in 2008 that triggered the global economic crisis. In addition, it is pointed out that the financial liabilities of Evergrande only account for 65,438+0/3 of the total liabilities. In other words, Evergrande's total liabilities 1.97 trillion, less than one third, are about 600 billion. Moreover, this debt is relatively scattered, so for the entire banking system, the risk exposure is still within the controllable range. To put it bluntly, even if Evergrande is the "first brother" in the real estate industry, if it is really finished, it will not have much impact on the country.

In addition, it also puts forward a solution, which is simply two points.

1, revitalize assets, especially high-quality assets, let it live and operate, in order to have a virtuous circle;

2. Accelerate the resumption of construction projects, protect the vital interests of consumers and protect the assets of ordinary people. At the same time, it also allows financial departments to cooperate well, such as providing loan support and so on.

The second point is really good news for us, at least it gives everyone a reassurance. It also protects the interests of our people from too much loss. But this explanation still shocked many people. What the country means is that since we have chosen marketization, we must respect the market-oriented gameplay. There is uncertainty in the market. If you win, you will make a lot of money. If you lose, you can only admit that you are unlucky and are willing to lose. From now on, the state will not interfere and intervene casually, nor will it let the Ministry of Finance help as in the past. Therefore, at present, the state will not help Evergrande "wipe its ass".