China Evergrande announced on the HKEx that after full discussion and comprehensive consideration of the current market environment, the rights and interests of shareholders and creditors, the long-term development of various industries of the group and other factors, it decided to cancel the special dividend scheme.
Evergrande: to ensure the stable and healthy development of the company, we don’t understand the rating downgrade
In the case of various rating agencies looking down on China’s real estate industry, some agencies recently downgraded China Evergrande. On July 26, the spokesman of Evergrande group said that he deeply regretted and did not understand the rating agency’s downgrade of China Evergrande.
The fundamentals are not bad. Why are they questioned?
Since this year, Evergrande has been short for many times, but it has continued to release good news at the operational level.
China Evergrande: decided to cancel the special dividend scheme
It is understood that since Evergrande fully implemented the new strategy of “high growth, scale control and debt reduction” in March last year, various business data have repeatedly hit record highs. From January to June this year, the cumulative contract sales reached 356.79 billion yuan, and the cumulative sales collection was 321.19 billion yuan, with a collection rate of more than 90%. Both sales and sales collection reached a record high.
The good performance of sales and sales collection makes Evergrande feel comfortable in “reducing liabilities”. Since March 2020, Evergrande has repaid seven overseas bonds totaling US $10.6 billion. Evergrande’s deleveraging plan also exceeded expectations. As of June 30, the interest bearing liabilities had fallen to about 570 billion yuan, the net debt ratio had fallen below 100%, and a red line had successfully “turned green”.
Positive game with short forces
In response to the company’s short selling behavior, a spokesman for Evergrande group said that overseas short selling institutions frequently create public opinion through internal and external joint efforts, maliciously short Evergrande shares, causing great panic in the capital market. On September 24 last year, the short forces maliciously short Evergrande, and the short volume on that day was more than 130 times of the usual short volume. Since the end of May this year, it has started to cooperate internally and externally to continuously maliciously short Evergrande, creating seven or eight rounds of public opinion. Only an overseas media has written 41 articles to discredit Evergrande and create public opinion within two months.
In fact, various negative and untrue rumors about Evergrande from last year have been falsified over time, but the recent emergence of new rumors or “speculation of old rumors” still has a great impact on Evergrande’s normal operation.
Therefore, the spokesman of Evergrande group stressed that with the full assistance of all strategic partners and financial institutions, all parties will work together and unite to overcome difficulties and ensure the stable and healthy development of Evergrande.