Thunderstorms in Greenland group

Greenland Group is a well-known real estate development enterprise in China, established in 1992 and headquartered in Shanghai. However, at the end of 20 18, Greenland Group was exposed to financial fraud, which caused many investors to suffer huge losses. This paper will introduce the reasons why Greenland Group suffered from thunderstorm and how to avoid similar investment risks.

Causes of Thunderstorms in Greenland Group

The main reason of thunderstorm in Greenland Group is financial fraud. It is reported that Greenland Group executives have fabricated a lot of sales and income for many years to cover up the company's financial situation. These frauds mislead not only investors, but also regulators and banks.

In addition, Greenland Group has a lot of debts and high interest expenses. Due to the decline of the real estate market and policy regulation, Greenland Group's sales and profits fell sharply, resulting in its inability to repay its debts, which eventually led to a thunderstorm for the company.

How to avoid similar investment risks?

1. Understand the financial situation of the company.

Before investing, we should know the financial situation of the company. This includes the company's income, profit, debt and cash flow. If the company has a large number of debt or cash flow problems, then the company may have certain investment risks.

2. Pay attention to the operation of the company.

In addition to understanding the company's financial situation, we should also pay attention to the company's operation. This includes the company's sales, market share, product quality and customer satisfaction. If the company's sales and market share are declining, then the company may have operational risks.

3. Choose a reputable investment institution.

Choose a reputable investment institution before investing. These institutions usually conduct strict review and evaluation of investment targets to ensure the safety of investors' funds. In addition, we can choose a suitable investment institution by studying its historical performance and customer evaluation.

4. Diversify investment risks

Finally, we should diversify investment risks. This means that we should not put all our funds on one goal, but spread our funds over multiple goals to reduce investment risks.

conclusion

The thunderstorm in Greenland Group is mainly caused by financial fraud and debt problems. In order to avoid similar investment risks, it is necessary to understand the company's financial situation and operating conditions, choose reputable investment institutions, and diversify investment risks. Investment is an activity in which risks and benefits coexist. We should invest rationally and avoid blindly following suit and taking risks.