Evergrande’s financial crisis has not been eliminated. An exclusive investigation by "Hong Kong 01" found that Evergrande used its financial company "Chuangying Finance" to lend a high percentage of the "breathing plan" to the small owners of the Soguan Wat property "Long Long Bay" in Tuen Mun. Once the loan is clicked, the loan is then cashed out to another financial company "Lei Shing Hong".
This "subprime mortgage" operation temporarily involves about 100 units, involving a mortgage amount of about 300 to 400 million yuan. However, the amount of borrowings for Chuangying's refinancing has not been disclosed.
Some of the "secondary mortgages" were built in June last year, which means that the capital chain was already quite tight before the central government set up the "three red lines" for internal housing in August last year.
Some lawyers pointed out that the sub-mortgage is an act of the financial company and has no substantial impact on the small owners who repay the loan as usual.
▼Junlong Bay Building Inspection▼
+17
From June 2020 onwards, successively clicked to non-Hengda wealthy boys
China Evergrande (3333) is located in Tuen Mun Soguan Wat’s real estate "Junlong Bay". It went on sale in 2019. At that time, its subsidiary "Chuangying Finance" provided mortgages of up to 90% of the property price. The market is commonly known as "breathing plan".
The investigation of "Hong Kong 01" found that some of the "Chuangying" mortgages will be cashed out in the form of "sub-mortgage" (Sub-mortgage) to the finance company "Lee Shing Hong Credit Co., Ltd." from June 2020.
Most of the units involved have begun to undertake mortgages during the uncompleted period.
"Hong Kong 01" found that Evergrande’s "Chuangying Finance" had borrowed from another financial company in the form of a sub-prime mortgage for the first mortgage of the Tuen Mun real estate "Jinglong Bay".
(Data Picture / Photo by Yu Junliang)
It's not common to subscribe to new disks, and small owners don't know it
According to the "sub-mortgage" document, Chuangying used the mortgage as a guarantee in exchange for the loan from Lei Shing Hong, but the total amount of the loan was not disclosed.
The document pointed out that Chuangying pledged all the mortgage rights to Lei Shing Hong; if Chuang Ying did not repay the money to Lei Shing Hong or other defaults occurred, Lei Shing Hong could take over the mortgage rights.
"Secondary mortgage" is not "secondary mortgage". "Secondary mortgage" refers to the property owners who mortgage the property after one mortgage and borrow money from the financial institution; but the "secondary mortgage" is borrowed by the financial institution that lends the first mortgage and then mortgages the mortgage. Money is not common in new developments. Since small owners are not involved in it, they may not know it.
Evergrande’s Tuen Mun So Kwan Wat property "June Dragon Bay" was launched for sale in 2019. At that time, many buyers were queuing to buy.
(Information Picture / Photo by Zhang Haowei)
This year also transferred dozens of mortgage units to another wealthy boy
In September of this year, Evergrande also packaged and sold the existing mortgages of Junlong Bay to "Orix Financial Services Hong Kong Co., Ltd." in the form of "Assignment of Mortgages", involving more than a dozen units for the time being.
In recent months, there has been news in the market that Evergrande’s Chuangying is no longer undertaking mortgages for new customers of Junlong Bay. Some of the old customers who have been promised to undertake the "breathing plan" have also requested to sign a non-disclosure agreement and switch to ORIX. Apply for a mortgage.
"Hong Kong 01" found that many homeowners have chosen to repay the mortgages of "Chuangying" in recent months, turning to other banks to take down mortgages with lower percentages.
The second phase of Junlong Bay was postponed for a while, and more than 100 buyers abandoned the one-click provided by Evergrande Yingchuang.
+4
The capital chain is relatively tight before the announcement of the central red line
Lawyer Leung Wing-keng explained that since mortgages are generally a profitable business, they can be re-mortgaged to borrow money; while sub-mortgages are acts of finance companies and have no real impact on small owners who repay their loans as usual.
He pointed out that all mortgagees generally reserve the right to require the borrower to repay in one go at any time; but for small property owners with normal finances, it is not difficult to remortgage in the market.
The prelude to the 2008 financial tsunami and the "subprime mortgage crisis" in the United States were real estate mortgages, packaged into financial derivatives, and "subprime mortgages" to other financial institutions and investors. At that time, small business owners had no ability to repay, and the break of the capital chain triggered a domino effect.
"Hong Kong 01" revealed that Evergrande had "sub-mortgaged" its real estate mortgages, which occurred as early as last June.
At that time, Evergrande was still in the midst of the sky, and its stock price hit a recent high of 27.108 yuan on July 6, 2020.
In August last year, the central government announced the "three red lines" for domestic housing, and Evergrande touched all of them.
By this year, funding crises and debt crises have continued to erupt.
"Hong Kong 01" earlier exclusively revealed that Evergrande Chairman Xu Jiayin renamed the detached house on Buli Path at the top of the mountain to the butler Tan Haijun and mortgaged it to China Construction Bank (Asia) in exchange for a grace period of US$260 million in debt.
Revisit the report:
01 Exclusive | Evergrande Mortgages Xu Jiayin Mountaintop Mansion for Overdue Unpaid USD 260 Million Bond Grace
01 Exclusive | Evergrande Mortgages Xu Jiayin Mountain Top Mansion to Realize 300 Million Yuan
01 Exclusive | Evergrande Xu Jiayin's 1.5 billion Hong Kong Peak Property changed its name to Xufu "Steward" in July
Evergrande Chairman Xu Jiayin, through his company, owns a detached house at Block C, No. 10, Buli Path, Peak. The company’s director has recently been changed to the "housekeeper" Tan Haijun.
Building 10, Block B, is also held by a related company of Evergrande, and the director is also Tan Haijun.
(Photographed by Liang Pengwei / Drawing by Hong Kong 01)
+2
▼Demonstrations of the suffering masters of Evergrande in various places▼
01 Exclusive | Evergrande Mortgage Xu Jiayin Hilltop Mansion for overdue unpaid USD 260 million bond grace "Steward" Senior Officials Gathering Dinner in Violation of Restrictions | Chen Fen, a senior executive of Evergrande involved in the rape, did not show up in his residence. Multiple suspects to be resolved 01 Exclusive |
01News
