Huaxia Happiness 1 1 100 million Trust Plan is overdue. What is the reason?

Mainly because of the strengthening of real estate control policies and the limited financing channels of Huaxia Happiness, the capital flow has been damaged. Recently, according to media reports, Rong Trust announced that due to Huaxia Happiness's failure to pay the trust in time, its related trust projects could not be liquidated in time, involving more than 1 1 billion yuan. According to insiders of Zhongrong Trust Company, the trust company has been communicating with Huaxia Happiness Company, but it has not received a clear answer. At present, the company has initiated relevant legal procedures. Affected by this news, Huaxia Happiness bonds fell across the board, and its overseas dollar bonds also fluctuated greatly. The market is discussing the redemption crisis and risk of Huaxia Happiness. Subsequently, a number of financial institutions also downgraded the credit rating of Huaxia Happiness, and its share price also fell sharply.

According to the analysis of relevant people, Huaxia Happiness is indeed facing a relatively large debt pressure. In the short term, Huaxia Happiness can only alleviate the debt risk through bank lending. But in the long run, the company still needs to increase repayment efforts to successfully solve these debts and weaken leverage. At present, the total debt of Huaxia Happiness is about 222 billion yuan, and the debt due within one year is 1 1000 billion yuan. How to repay this debt of up to 1000 billion yuan in the coming year is no small problem. Some internal executives of Huaxia Happiness said that since the end of last year, the company has been discussing the debt problem. There are two directions at present. One direction is to transfer some assets to Ping An Company for capital withdrawal, and the other direction is to transfer all the real estate and land in some third and fourth lines to increase capital withdrawal.

However, there is still a consensus within Huaxia Happiness at present, otherwise there will be no trust default. At the time of the incident, everyone thought that the trust company would not pay as hard as before. As a result, Zhongrong Trust directly chose the statutory trust, and there was no rigid payment. In fact, this is in line with relevant regulations. Since 20 18, the supervision unit has always stressed that trust should break the rigid redemption, but some trust companies have not faithfully implemented it.

Most people still think that trust can at least protect the principal, but in fact, laws and regulations have never recognized the principal protection of trust. Even if you breach the contract, it is normal to lose the principal. This time, Zhongrong Trust actually reminded all investors to be wary of trust investment and avoid losses. At present, Huaxia Happiness Trust has a high probability of default, and the company can also take the road of selling assets in the future. After all, the financing channels of housing enterprises will only become narrower and narrower in the future.