What is the “Evergrande” bankruptcy crisis problem in China?

2021年9月23日

This article was translated into English by Google Translate by the author who understands only Japanese.

for that reason
“Isn’t this strange?"
I think there are many parts.

Of course, I try to provide meaningful information, but besides that, please use it to enjoy strange English.

 

※If you want to study Japanese, please read this together with the original article in Japanese.

>>>『中国”恒大集団”破綻危機問題とは何か?』難しいことが苦手な人にもわかりやすく説明します。

 

In the latter half of September, all financial products, including NY stocks, the Nikkei average, and even virtual currencies, fell sharply.

The cause is said to be the bankruptcy crisis of the Chinese company “Evergrande Group".

 

In response to this event

“It’s dangerous! Investment products have fallen sharply and are losing money!"

While some people say

“Huh? And? I don’t think it has anything to do with me who hasn’t invested."

“Even if the stock price is somehow said, it doesn’t come out very well."

“I’m making a fuss, but what’s happening?"

“I tried to find out by myself because it was noisy, but I don’t understand because it’s difficult! Tell me so that I can understand!"

Many voices like this are heard.

 

To be honest, this event may affect people who have not invested in some cases, so it is better to understand what is happening just somehow.

Therefore, this time

“What is China’s Evergrande Group Anxiety Problem? “

I will explain about this so that you can easily understand it even if you are not good at difficult things.

 

By reading this article

◎, you can understand the contents of the evergrande group bankruptcy problem that is currently making noise

◎, I know what kind of impact this event may have on those who are not investing

◎, you can also see what points you should pay attention to in this event in the future

 

In addition, even if you look at the net news and news content, this article

“It’s difficult and I have no idea what you’re saying!"

For those who say, I select and write information based on my own judgment and prejudice.

Therefore, there may be some discomfort for those who are familiar with it, but please understand that the person you are aiming for is different.

 

Let’s take a look at China’s Evergrande Group Bankruptcy Crisis issue together!

 

Events that could trigger the bursting of the real estate bubble in China


What is the evergrande group bankruptcy crisis problem that is currently in turmoil?

“Events that could trigger the bursting of the real estate bubble in China"

Can be expressed as.

 

A little while ago, there was a lot of noise about buying a bomb in China or buying a prime location in Japan by Chinese people.

That is because China has achieved rapid economic growth and was in a bubble state.

It’s the same as the Japanese bubble a long time ago.

“Such a bubble economy may collapse !?"

That’s why it’s making noise.

 

“What! Then it doesn’t matter to me who hasn’t invested! You don’t have to know!"

You might think, but it might be a little sweet.

China is now the world’s second largest economy, surpassing Japan.

Moreover, Japan is a neighboring country, and after all, it has many economic ties with China.

If such a bubble burst in China, wouldn’t it have a considerable impact on Japanese companies?

 

Don’t use roundabout words or difficult explanations.

The point is

“Your salary may go down!"

That is.

You see, it ’s no longer a matter of others at once, right?

 

When this event was no longer a matter of others for Japanese who did not invest, 3 points about this event

①, What is the Evergrande Group in China?

②, Why was it in a crisis situation of bankruptcy?

③, future attention points

 

Let’s take a closer look at these together!

 

 

① What is the Evergrande Group in China?

<One of the big companies that support the Chinese economy>


What is the Evergrande Group of Chinese companies?

“One of the major real estate companies that undertakes national projects"

is.

Because it is a scale that can undertake national project level goods, it is a so-called general contractor in Japan.

>>> Link to Wikipedia “Evergrande"

>>> Link to “Evergrande Group Official Website"

 

Employees of the entire group

About 4 million people

It is said that there are, so if the business goes bankrupt (bankruptcy), there is a possibility that so many people will be unemployed at once.

If there were so many unemployed people in China, the number of people coming to Japan might increase. (Including smuggling)

 

When asked like this

“Maybe that’s true, but does that affect us?"

You may be wondering, so let’s take a slightly different perspective from the economic side and look at the impact on us that can be felt more closely!

 

 

<Chinese thieves>


Due to the influence of the new corona, not everyone can enter Japan, but I think that many people who come to Japan without a job are looking for a job.

However, if you are denied entry, you may be smuggled.

Then, what will happen to them after they enter Japan?

“What if they couldn’t find a job?"

“What is the purpose of smuggling?"

Some people start stealing.

It’s a so-called Chinese thief.

 

I know that I have experience as a police officer, but the method of Chinese thieves is quite radical.

>>> Futahii’s profile (Twitter)

And I, who is also an S-class security diagnostician, say this, but there is no way to stop them in Japanese houses.

If you are targeted, you are done.

for that reason,

“How can you aim at the home of another person who is defenseless?"

You can only take measures like that.

 

Because the thing to aim for is not cash

“I don’t have much cash, so even if a thief gets in, it won’t hurt that much!"

I can’t say that.

There is a possibility that such people will increase in Japan in the future.

It’s a little scary, isn’t it?

Although there is a lot of fuss about the economy, there is a possibility that this aspect will have an impact on us as individuals.

It’s not someone else’s affair at all.

 

 

②Why was it in a crisis situation of bankruptcy?

<I had a lot of debt>


Next, I would like to take a brief look at why the Evergrande Group, which is such a large company, is in a state of crisis of bankruptcy.

As conclusion

“Because I had too much debt"

is.

Don’t use difficult words like other articles.

The point is

“I was in a crisis because I had too many debts and loans."

about it.

 

When asked like this

“But why did a big company that undertakes a national project borrow so much that it couldn’t hold it?"

The question arises, right?

I would like to explain step by step in an easy-to-understand manner, including the background of this area.

 

 

<Background of debt and reasons for management deterioration>


First of all, the reason why the Evergrande Group was in debt is

“Because we were developing our business one after another in the booming economy of the bubble."

is.

 

When a large company also develops its business, it is not possible to make a lump sum payment in cash, so it will be borrowed from a bank or the like.

Banks also lend bang bang money in the bubble economy.

Let alone the other party is a large company that seems to be at the center of the Chinese bubble.

Evergrande Group seems to have expanded its real estate business, as well as a wide range of businesses such as soccer team management, mineral water, electric cars, hospitals, and nursing homes.

I was in debt each time, but I thought I could repay it because I was in the bubble economy’s cool mode.

 

However, just as Japan’s bubble ended, the bubble economy will eventually stop growing and eventually collapse.

As a result, growth in China has been slowing down recently.

Furthermore, the new corona that came there was a big blow to the economy, the so-called corona shock.

Furthermore, the movement of real estate regulation by the Chinese government will be a big blow to the Evergrande Group, which is a real estate company.

As a result of these overlapping at once, the management of the Evergrande Group deteriorated, and it became impossible to repay the debt that I thought I could repay.

 

If the Evergrande Group goes bankrupt without being able to repay the debt, the remaining debt and the investment funds of the investors will not be returned and will disappear.

So many people

“Don’t be foolish! Give it back! I won’t let you go bankrupt and run away !!!"

You are making a fuss.

And other investors who saw the movement

“Something is wrong! If the Chinese economy gets worse, it will affect the management of American and Japanese companies, right? Then, let’s quit investing and bring it in cash to see the situation once!"

I think.

As a result, the stock prices of companies other than China have also fallen.

 

When the stock price fell, the company’s funds became tight, so

◎, employee salary can drop

◎, the price of products in the store can increase

It will affect us in the form of such things.

Speaking of Zackri, this is the problem of the bankruptcy of the Evergrande Group, which is currently in the turmoil.

 

 

 

③ Future attention points

<Chinese government wants to fund and help>


to this point

“What’s happening now?"

I have seen.

Finally, there

“What part should I pay attention to in the future?"

I would like to confirm about and finish.

 

As conclusion

“Will the Chinese government help? “

Let’s pay attention to the movement of the Chinese government.

Evergrande Group is a very important company that seems to be at the center of the Chinese economy.

Therefore, I don’t want to let it go bankrupt without doing anything.

Therefore, there is a possibility that the Chinese government will provide funds to help.

 

In the past, it was reported in Japan that this would provide publicly funded assistance to banks that are likely to go bankrupt.

It is said that the Chinese government up until now has definitely provided funds to help.

But now, it seems that there are circumstances where you can’t help by letting go.

 

 

<Situations where you cannot help with funding>


Of course, the funds from the government are taxes.

And recent China

“Stop wasting money! Reduce your deficit !!"

“Reduce the disparity between the people! Turn the profits of large companies into the poor!"

It seems that he was showing a lively movement.

 

for that reason

“While issuing such a big command, do you give a huge amount of money to a wealthy private company?"

It seems that the cold gaze hurts.

Moreover, it is the Chinese government itself that has tightened real estate regulations, which is one of the triggers for this deterioration of management.

If this is not good

“I’ve put up with it until now, but I can’t put up with this time anymore!

There is also a risk that the point of anger will turn to the current Chinese administration.

 

Of course, if the anger of the entire nation turns to the current administration, it can be a movement such as a change of government, so the current government has a situation that it wants to avoid at all costs.

In other words, as the position of the Chinese government

The real intention is

“I want to immediately fund and help the Evergrande Group, which is also the center of the Chinese economy!"

but

“If you spend too much money, the anger of the people may turn to the current government and take you down!"

Result

“What should I do ~~~?"

That’s why.

 

The most recent attention is being paid to the debt repayment date

September 23rd and September 29th

It is said that.

How does the Chinese government work against these?

This will be the point of interest in the future.

 

It is said that if you give money and help, the economic crash will not occur in the near future.

On the other hand, it is said that if you do not help, there may be another big crash.

What will happen?

“That’s your business!"

Let’s pay attention, not!

 

 

summary


The problem of bankruptcy of the evergrande group of Chinese companies can be said to be an event that can trigger the bursting of the real estate bubble in China.

 

On top of that, 3 points

① What is the Evergrande Group in China?

“A large real estate company that can undertake national projects. One of the core companies in the Chinese economy ”

 

(2) Why was it in a crisis situation of bankruptcy?

“I got on the bubble and expanded my management. After that, management deteriorated due to the corona shock, etc. “

 

③, future attention points

“Whether the Chinese government will invest public funds to help? 』\

 

With this, I think you can understand the contents of the evergrande group bankruptcy problem that is currently in the turmoil.

You also understand what kind of impact this event could have on us who are not investing.

◎, salary may decrease

◎, there is a possibility that the products in the store will be expensive

◎, Chinese thieves may increase

And so on.

Furthermore, I was able to sort out what points of this event should be focused on in the future.

 

Besides, like this,

“It’s difficult and I don’t know what’s going on!"

If you are interested, please read other articles as well.

Thank you for reading the long text so far.

It was worth writing that you could read it, so I’m really happy! !! !!

 

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