The bankruptcy and restructuring of HNA Group, which has debts of at least 700 billion, is a replica of the “Guangguo Investment”, according to Liu Ruishao, a senior commentator in Hong Kong.
Described as a giant “blood-sucking” enterprise, HNA Group was reported to the Hainan High People’s Court by creditors at the end of last month (Jan. 29) for failure to pay its debts as they matured, and applied for bankruptcy reorganization of HNA Group.
Liu Ruishao, a senior commentator in Hong Kong, said bluntly that HNA was a mainland consortium with the largest capital raising and the fastest external expansion, and now it has burst the pot, and the bankruptcy filing is a sign of concern because mainland economic problems are usually associated with politics: “We all know how HNA made its fortune, and HNA was when Wang Qishan was the governor of Hainan, and there were already airlines at that Time. The airline was already in existence when Wang Qishan was governor of Hainan, and slowly grew bigger. It is the whole process of development is Wang Qishan during his administration, Wang Qishan in the whole group of HNA expansion, operation inside there are no other interests?”
HNA bankruptcy into “Guangguo Investment” replica
Liu Ruishao took the example of Guangdong International Trust and Investment Co. It was a consortium directly controlled by Guangdong Province, which also continued to invest, including the Dongjiang water for Hong Kong people to drink is also “Guangguo Investment” investment, and many real estate projects, but in 1999, “Guangguo Investment” announced in front of Chinese and foreign creditors will “Bankruptcy filing”: “So some bankers in Hong Kong at that time, if you remember, he said ‘I work for the people of Hong Kong’, this is Li Guobao, went up to talk about how to deal with those debts. Guangdong was unable to deal with, equal to the current incident of Hainan Airlines.”
This time the same Hainan provincial government to intervene in the investigation, but the insolvency, is not Hainan Province can handle alone, Liu Ruishao that Hainan authorities can not handle because of the creditors behind the problem: “Your debtor if you are more senior than you, you want to talk to him about debt restructuring, the other party is not willing. It turns out that the incident of the Guangguo Investment, and Guangdong Province can not deal with, so to Beijing called the Beijing officials down to deal with, the Beijing officials are who? We may not have any impression, at that time this Beijing official is Wang Qishan, he came down to do the vice governor of Guangdong Province.”
Liu Ruishao said that the year Wang Qishan to Chinese characteristics of the way to deal with the debt, the mainland enterprises with the appeasement of the way to pacify, to foreign capital is not to pay back money: “You sue me. In the mainland to sue, certainly lose, in the international lawsuit it is useless, to the WTO, arbitration is useless.” . To Hong Kong investors, the state will take care of you: “Take care of your debt repayment at a 30% discount agree? Wang Qishan said ‘30% discount do you want? The next step I 2 discount ‘, the results to the end are to accept helplessly.”
China’s economy is full of holes and sores
It is worth noting that the bankruptcy of HNA also shows that China’s economy is full of holes, Liu Ruishao pointed out that the official claim that the mainland’s GDP last year was an increase of 2.3 percent, but in fact it is an illusion, because the central government vigorously promote the “internal circulation” is not successful, because the mainland people’s per capita consumption decline: “It says It says that the per capita consumption in 2020 will be 21,210 yuan, which is a good figure, but if you divide it by 12 months, it is about 1,800 yuan per month. 1,800 yuan in domestic consumption, which is 4% lower than the previous year. People do not want to spend, how to rely on internal circulation?”
The mainland official also said that the foreign trade balance in 2020 is still in surplus, in fact, because imports were reduced by 1.1 percent, Liu Ruishao: “We should pay attention to when it again announced how much foreign exchange reserves, because foreign exchange reserves to buy international influence overseas, now the Belt and Road has been rotten, there are many projects are no longer invested, and those countries do not have the money to pay back. You now and the EU just a month ago signed an investment agreement, the main open China’s market, looking for European money to fill, the United States those gone.” However, Europe always has to go with the United States: “The mainland of those money still moved into, foreign exchange reserves will be less and less, you will lose the wife and the army, how do you influence the relationship between Europe and the United States ideology, interests?”
Private enterprises will be communist surge
In the economic downturn, Liu Ruishao predicted that the future of the Communist Party will continue to “common your production”: “the so-called common your production, will not be a total of you, to see which piece of fat pork can eat first, before eating you. Ma Yun is it, ate 2 out of 3. Local and local assets, local most typical, we often talk about Maotai, Maotai ten percent of their own donations to the local government, the other folk of Beijing’s Xiangtang Cultural Village, it said your land was not right at the time, a collection was taken away. In the past I have also spoken, the ancient city of Pingyao in Shanxi, and so on.”
Now the official constantly sing the good provinces economy, creating the illusion of China’s economic rebound, Liu Ruishao said, in Inner Mongolia, for example, economic growth is almost zero: “Its own estimate of economic growth in 2021 is very low. The national average, those marked green cities will speak out to people, but other cities, may be one percent, two percent, this is mainly a local disparity between rich and poor, the strength of the economic gap is getting bigger and bigger, foreshadowing the disparity between rich and poor in China, the official forced the people to rebel, or the people bomb, do not say anti first, this frequency is more and more.”
Liu Ruishao said that the incident in Myanmar from the objective point of view, is to strengthen the justification of the Communist Party’s dictatorial governance, the Chinese Communist Party leader Xi Jinping constantly emphasizes the importance of military, social stability, strengthening the dictatorial apparatus, fearing that the critical point will come early: “rigid fracture that snap off the chance is not increased? So, from the economy we see the whole incident, plus the HNA pursued down I wonder if it will be pursued to Wang Qishan. If Xi Jinping is using such an opportunity to engage in power struggle and so on, more so to their own internal chaos.”
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