In mid-to-late August, the three stocks of the Evergrande series, China Evergrande, Evergrande Automobile, and Evergrande Property, resumed trading in turn, marking the gradual resumption of normal business operations of Evergrande Group after a period of turmoil. In particular, Evergrande Auto has successfully introduced new strategic investors, injecting new vitality into this former industry leader. At the same time, the timing of an important meeting of China's creditors has also been preliminarily established, all of which indicates that Evergrande is moving in the direction expected by its founder Xu Jiayin.
However, just when people thought that Evergrande had come out of the predicament and was about to usher in new development opportunities, reality poured cold water on people. Everything stalled after he was investigated. Industry insiders have become pessimistic about Evergrande's debt restructuring again.
Bai Wenxi, chief economist of IPG China, said in an interview with CBN that it is still uncertain whether Evergrande will eventually go bankrupt. He pointed out that bankruptcy liquidation is not only a simple business issue and legal issue for an enterprise, but also an important issue involving social stability and people's livelihood. Until there is no practical solution to social problems such as "guaranteeing the handover of buildings", it is obviously unrealistic for Evergrande to officially declare that it has entered bankruptcy proceedings.
Bai Wenxi stressed that more time and efforts may be needed to find a solution, including renegotiating the terms of debt restructuring, seeking new investors, and selling assets. He noted that the likelihood of bankruptcy would increase if the current predicament could not be effectively addressed.
Although Evergrande faces many difficulties, it is not without solutions. As the state's regulation of the real estate market gradually stabilizes, and the government's strict control over the bankruptcy and liquidation of real estate enterprises, Evergrande may gradually restore its solvency and get out of the predicament through debt restructuring and asset sales.
In general, although the prospects of Evergrande are not optimistic, with the efforts of all parties, Evergrande may still gradually get out of the predicament through effective measures and usher in new development opportunities.