On February 6, China Evergrande held a mobilization meeting for the start of the 2022 Baojiao Building New Year, revealing that it will deliver about 70 million square meters and 600,000 sets of buildings in 2022. Xu Jiayin also proposed

On February 6, China Evergrande held a mobilization meeting for the start of the 2022 Baojiao Building New Year, revealing that it will deliver about 70 million square meters and 600,000 sets of buildings in 2022. Xu Jiayin also proposed that we cannot rely on the sale of assets at a low price to repay debts, otherwise it will be difficult to pay off the debts when the assets are sold at a low price.

For the above statement, the author agrees with the first point of view, and has reservations about its second point, only when the guarantee and delivery of the building can the cash flow come back, can the capital turnover be re-formed, can the judicial litigation and social bad evaluation be reduced, can it regain the recognition of the partners and the public, and the enterprise may also come back to life, so the guarantee and delivery of the building is very critical.

Second, the author believes that in a critical moment, in special circumstances, asset disposal is also a way to alleviate the pressure on funds, low-cost disposal of assets, books may lose money, but the benefits of moderate asset disposal are also obvious.

1, reduce the pressure to start construction, the land is not developed for two years, may face the risk of being recovered, forced development, funds can not be supported, may be rotten, causing greater trouble.

2, like Evergrande's head enterprises, the previous land prices are relatively low, even if the low price is sold, the cost of recovery is no problem. After the land is transferred, the funds are used to repay the debt, which can not only reduce the total debt, but also maintain the credibility of the financial institutions. The most critical point is that the disposal price of land or house is low, but after repaying the debt, this part of the funds no longer needs to pay interest, to know that Evergrande's previous commercial bills and wealth management products have high interest rates, so that the appropriate disposal of assets in exchange for cash flow to repay debts, both to reduce the pressure of liabilities, but also in exchange for financial institutions confidence, may be more worthwhile.