[China Two Sessions] Including 12 Real Estate Tycoons in Delegation... Will They Appeal for Support Measures?

Real Estate Tycoons Missing from Default Scene
"China's Two Sessions Focused on Legislation... Likely to Appeal for Support Measures"

Many real estate industry tycoons are reported to be attending the China Two Sessions (National People's Congress and Chinese People's Political Consultative Conference) opening on the 4th. They are expected to appeal for government support measures for the still sluggish real estate market, as well as solutions to the massive debt problems.

According to a report by Hong Kong's South China Morning Post (SCMP) on the day, among the 5,138 delegates attending the Two Sessions are 12 executives and founders of real estate development companies. Notable figures include Hui Ka Yan, chairman of China Evergrande Group; Yang Guochang, chairman of Country Garden; Hui Wing Mau, chairman of Shimao Group; Teng Jiaolin, chairman of YanGo Group; Chen Jinshi, chairman of Jiangsu Zhongnan Construction and Real Estate; Zhang Li, chairman of Guangzhou R&F Property; and Au Zhonglong, founder of Zhenro Group. The short- and long-term debts of these companies amount to approximately 1.6 trillion yuan (about 301.872 trillion KRW). Among them, SCMP reported that some company officials are officially in a state of default.

[Image source=Yonhap News]

The National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) are at the center of China's legislative process and serve as the frontline venue to confirm the direction of future government policies. The real estate delegation is paying close attention to whether the central bank will maintain strict borrowing limits and is expected to plead for policies to support the debt-pressured real estate industry, SCMP observed. Considering the precarious situation of the companies, some foresee that this Two Sessions could be their 'last chance.'

The overdue amount of the defaulting companies included in the delegation is reported to be about 32 billion dollars (approximately 41.632 trillion KRW). However, SCMP anticipated that this figure likely does not include the increasing unpaid private loans and regional bonds.

Previously, the delegation members including Chairman Hui Ka Yan, Chairman Hui Wing Mau, and founder Au Zhonglong failed to reach an agreement with creditors regarding restructuring plans. Among the distressed construction companies, Guangzhou R&F Property is the only one to have completed debt restructuring. Country Garden, currently China's largest real estate company by sales, faces debts maturing this year amounting to 3 billion dollars. Beijing-based Radiance has a similar scale of about 2.5 billion dollars.

Yan Yuejin, a researcher at E-House China, a Chinese real estate information provider, explained, "There is not much they can do to increase sales, which is key to resuming normal business operations. They are waiting for more relaxed measures, and the Two Sessions could be a good opportunity to appeal for that."

This content was produced with the assistance of AI translation services.