learn business mandarin
Case Study is the most effective learning method to acquire language skills and put them in practice.
Not yet a member ? Next step:
contact us to arrange a trial lesson.
China Property Market Rocked as Evergrande Struggles to Repay $300bn Debts
Who is XU Jiayin? Why Evergrande is now in such big trouble?
After expanding rapidly for years and snapping up assets as China's economy boomed, Evergrande is now snowed under a crushing debt of $300 billion. The world's most indebted property developer has been scrambling to pay its suppliers and warned investors twice in as many weeks that it could default on its debts.
1. Embattled Chinese property giant Evergrande on Tuesday conceded it is under “tremendous pressure”, a day after insisting it will avoid a bankruptcy that many fear could have a huge impact on the world’s number-two economy.
2. The Hong Kong-listed developer is sinking under a mountain of liabilities totalling more than US$300 billion after years of borrowing to fund rapid growth.
3. The group was downgraded by two credit rating agencies last week while its shares tumbled below their 2009 listing price, as a battery of bad headlines and speculation of its imminent collapse ran out across Chinese social media.
4. On Monday anxious investors protested at the Shenzhen headquarters of the sprawling conglomerate, as Evergrande said it is facing “unprecedented difficulties” but denied rumours that it is about to go under
r. Recently, Evergrande’s wealth was exploded and could not be redeemed, causing investors to worry.
6. In response, Xu Jiayin, Chairman of the Board of Directors of Evergrande Group, responded at the Evergrande Wealth Conference on September 10.
7. According to domestic media reports, XuJiayin stated at the Evergrande Wealth Conference that it is necessary to ensure that all mature wealth products are fully redeemed as soon as possible, and that a penny cannot be less.
8. He said that at present Evergrande has encountered unprecedented difficulties, but the fundamentals of Evergrande have not changed: the strong combat effectiveness of the staff has not changed, the land bank with sufficient scale and reasonable layout has not changed, and the ability to build high-quality communities has not changed. Big is still the original Evergrande, and the fundamentals of annual sales of 700 billion have not changed.
9. Next, leading cadres at all levels of Evergrande should lead all employees to resume work and production, ensure the delivery of buildings, do their best to sell, and resume normal operations. This is also the greatest guarantee for the redemption of Evergrande wealth products.
10. Evergrande’s collapse would be the biggest test that China’s financial system has faced in years.
11. The pictures of angry investors outside the firm’s Shenzhen HQ could also cause alarm in Beijing, where leaders are keen to keep a lid on any form of social unrest.
12. Some creditors have demanded immediate payback of loans.
13. Evergrande has already sold stakes in some of its wide-ranging assets and offered steep discounts to offload apartments, but still reported a 29 percent slide in profit for the first half of the year.
14. It is also struggling to sell its Hong Kong headquarters, even at a loss.
The key point and your take-away from this case study 'China Property Market Rocked as Evergrande Struggles to Repay $300bn Debts'. Your learning combines both language skills and market knowledge.
。
。
Active learning will accelerate your skills, and your study of 'China Property Market Rocked as Evergrande Struggles to Repay $300bn Debts'. Each exercise is designed to promote and strenthen your language skills. Login Required.
Not yet a member ? Next step:
contact us to arrange a trial lesson.