China’s second largest property developer, the Evergrande Group, has recently been struggling to complete its undeveloped properties, yet a social media campaign surfaced showing that construction had resumed, it was Pretending that the company was on a rebound. However, users on Chinese social networking sites are bluffing Evergrande.

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a video by wall street journal Several posts by bloggers on Weibo and WeChat show that some sites actually have “no construction for months” and that in other areas where construction has started, there are “less than 10 employees.”

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Shares of Evergrande fell nearly 20 percent on Monday, closing at just 23 cents. CNN reports that this stock valuation is the lowest total posted by the company since 2009.

Evergrande faces a net total of approximately $300 billion in liabilities. On Friday, the company warned it could run out of money after its creditors demanded that it come up with $260 million in debt payments.

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While Evergrande’s assets are tied up in property development, the key to potentially bolstering its cash flow lies in its ability to eliminate and sell off underdeveloped assets. Some see the new campaign as a sign that the company is moving in that direction; Others see it as a delay tactic to avoid seeing it as inevitable.

Evergrande has consistently missed its bond payment deadlines over the past several months, coming with the interest amount at the end of the loan’s 30-day grace period to prevent a collapse.

Following recent warnings of cash flow issues, Evergrande President Hui Ka Yan met with government officials in Guangdong province, agreeing to send a “working group” that would “oversee risk management.” After this meeting, the People’s Bank of China also joined in, saying it would not allow a potential Evergrande collapse to damage the country’s large real estate sector.

It is not clear whether the bank can be fully trusted on this. Scott Kennedy, Trustee Chair in Chinese Business and Economics at the Center for Strategic and International Studies newsweek The bank has the right to bail out the company in mid-October.

However, if the bank aims to use the Evergrande example as a way to slip a new level of buyer risk into its market, Kennedy said a successful bailout, despite the vast regulatory tools from China’s state bankers, could be a difficult task. could.

“If it is about re-establishing the role of the state in the economic system. If they give this message, it is completely credible,” he said. “If they’re trying to assure that there may be a narrow range of assets that state officials guarantee, and that market pricing will play a big role in managing risk and complications from investing.” , I guess it’s a tough sell.”