Source: Brokerage China Author: Qu Hongyan Recently, China Yangtze Power hit a historical high and once again showed the slow bull stock trend of "tripling in ten years". The slow bull market has left behind many passers-by and brought good returns to the steadfast investors. It is "rare for those who triple in one year to be like carp jumping over the dragon gate, while those who double in three years are few and far between." On the other end of the investment world, however, violent collapses are also deafening, with many financial products suspected of "Ponzi schemes" ceasing payments, leaving investors with no hope of recovering their investments. Both positive and negative cases illustrate the importance of forming a suitable mentality towards money in one's lifetime; otherwise, sooner or later, you will divorce yourself from your money. "I call this the money mind, a person's IQ can reach 120, 140, or even higher levels, and perhaps some people's minds are good at doing one thing, while others are good at doing another. They can do things that most ordinary people can't do. But I know some very smart people who make very foolish decisions because they lack the money mind." Buffett once said so. The so-called money mind refers to believing in common sense, believing in compound interest, being cautious and rational, thinking independently, prioritizing security over return, not dealing with people with questionable character, not easily guaranteeing for others, not believing in windfall profits, and not trying to cross legal norms for extra benefits. In today's world of ubiquitous information, everyone's wealth may become the "prey" of those with ulterior motives. Only with the money mind, can one form good behavior habits and shield oneself from separating from one's wealth. Do not entrust your wealth easily. Wealth is easy to lose but hard to accumulate, and trust is a vital reason leading to the rapid loss of wealth. "Do not allow anyone else to manage your business unless you can watch their every move closely and understand their behavior; or you have strong reasons to believe in their character and ability. For investors, this criterion determines when you can let someone else make investment decisions for you." Graham's criterion written eighty years ago is so clear. Almost all the investors who lost their wealth in the financial products have violated the above two criteria. They did not have the ability to closely supervise the whereabouts of their funds, nor did they have sufficient reasons to believe in the character of the product issuers. They easily invested their own wealth solely based on others' glib tongue and a piece of commitment paper. They did not act as gatekeepers of their own wealth and ended up with nothing left even if the government punished the wrongdoers. "An ounce of prevention is worth a pound of cure." This is a phrase Munger often says. Destiny must be in one's own hands, and investors with a suitable money mind will try their best to find suspicious points in their investments to protect the safety of their principal. For example, whether the manager is trustworthy, whether the underlying assets are profitable, whether oneself can timely monitor the risks in the investment process, and whether the sales staff is obtaining large commissions. As long as any unreliable signs are found, these investors firmly will not invest their money. Do not desire to get rich quick. As in the capital market and anywhere else, making money is not easy, and desiring to get rich quick will lead to quick loss of wealth. In the capital market, the desire to get rich quickly often leads to investors over-allocating specific stocks, industries, or assets at the worst time. For example, buying high-risk stocks that can gain huge returns once an adventure succeeds, but the chance of success is very small, also known as "whispering stocks" by legendary fund manager Peter Lynch. "They often tell investors a story with explosive effects. These 'whispering stocks' have a hypnotic effect on people, and it is easy for you to believe that the story the company tells has an emotional appeal that can easily confuse you." This is like hearing a very tempting "sizzling" sound, making you salivate, but you did not notice that there is no steak on the grill. In the eyes of investors who lack the money mind, stable yield provided by blue chips such as China Yangtze Power cannot meet their demands. However, historical experience clearly shows that buying stocks lacking in safety solely based on imagined high yields is unwise. The long-term average investment return of general stocks is 9%-10%, which is also the average investment return of stock indexes in history, a benchmark to measure one's investment performance and the benchmark to measure fund investment performance.
Author: Shi Qian

First, there is $EVERGRANDE (03333.HK)$ . There are market rumors that EVERGRANDE's wholly-owned subsidiary CEG Holdings has been ordered to be liquidated by the Hong Kong court, and CEG Holdings holds $EVERG SERVICES (06666.HK)$nearly half of the equity, which means that the liquidator of EVERGRANDE will be able to further acquire EVERGRANDE's assets. EVERG SERVICES on the Hong Kong stock market once surged over 37%.

Secondly, $COUNTRY GARDEN (02007.HK)$. COUNTRY GARDEN Holdings released an announcement disclosing the latest situation regarding its overseas debt restructuring and business development. According to the announcement, COUNTRY GARDEN announced the key terms of the restructuring proposal, and it has reached a consensus with a coordination committee consisting of seven well-known Banks (all long-term business partners of the group). This proposal constitutes a framework for further negotiations and specific documentation, aimed at implementing the group's overseas debt restructuring. If implemented, the restructuring proposal will allow COUNTRY GARDEN to achieve significant deleveraging, with a target of reducing debt by up to 11.6 billion dollars,

Thirdly, $CHINA VANKE (02202.HK)$ . CHINA VANKE announced that its subsidiary Shenzhen Bolan Rental & Leasing Services Co., Ltd. has applied for a 1.08 billion yuan, 30-year bank loan from Shanghai Pudong Development Bank and completed the withdrawal. The loan is guaranteed by Shenzhen Bofan Housing Rental Management Co., Ltd., which is held by the company. CHINA VANKE stated yesterday in response to the media that it will make every effort to raise funds for public debts due in 2025 from various aspects including operation and financing.

CHINA VANKE also announced that its holding subsidiary Wuhan Yutian Industrial Real Estate Co., Ltd. has successfully financed 2.04 billion yuan through a real estate bond investment plan using insurance funds, and it has adjusted the maturity date of this financing to the end of 2026.

Liquidation order

On January 10, there was another new development in the EVERGRANDE Group's liquidation case. The Hong Kong judiciary's website shows that the Hong Kong High Court hearing officer, Lam Chak-ming, will hold an internal hearing on January 10, 2025, at 2:30 PM regarding the miscellaneous applications for inability to repay.

According to Asdaq Finance, the wholly-owned subsidiary of EVERGRANDE, CEG Holdings, has been ordered to be liquidated by a Hong Kong court. CEG Holdings holds nearly half of the shares of EVERG SERVICES, which means the liquidator will further obtain EVERGRANDE's Assets.

Currently, the liquidator is trying to recover about 6 billion dollars in dividends and salaries from seven individuals, including founder Xu Jiayin, and has also initiated lawsuits against EVERGRANDE's auditors and Real Estate Services companies.

Driven by this boost, EVERG SERVICES surged more than 37% this afternoon.

Notably, Tianyancha legal litigation information shows that on January 6, EVERGRANDE REAL ESTATE GROUP CO., LTD added 15 new enforcement and recovery information items, with a total enforcement symbol of over 1.05 billion yuan, involving cases such as bills disputes and financial loan contract disputes. Some of the defendants in these cases also include Handan Daye Real Estate Development Co., Ltd. and Guiyang EVERGRANDE Yunjing Real Estate Development Co., Ltd., with the enforcing courts including the Intermediate People's Court of Handan City, Hebei Province and the Intermediate People's Court of Guiyang City, Guizhou Province.

Deep risk information shows that EVERGRANDE REAL ESTATE GROUP CO., LTD currently has over 460 pieces of defendant information, with a total enforcement amount exceeding 54 billion yuan. In addition, the company also has multiple consumption restrictions, dishonest executors, and cases of final rulings.

COUNTRY GARDEN welcomes Bullish news.

Positive news has emerged from COUNTRY GARDEN. According to the company's latest announcement, there has been new developments in Overseas debt restructuring and business development.

According to the announcement, COUNTRY GARDEN has announced key terms of the restructuring proposal and has reached a consensus with a coordination committee composed of seven well-known Banks (all long-term business partners of the Group). This proposal constitutes a framework for further negotiations and specific documents aimed at implementing the Group's Overseas debt restructuring. If implemented, the restructuring proposal will allow COUNTRY GARDEN to significantly deleverage, targeting a debt reduction of up to 11.6 billion USD, which also includes extending the maturity to a maximum of 11.5 years and lowering financing costs, aiming to reduce the weighted average borrowing cost from approximately 6% per year before restructuring to about 2% per year after restructuring.

At the same time, the controlling Shareholder of COUNTRY GARDEN is considering converting the total outstanding principal of 1.1 billion USD in existing shareholder loans to the Group into shares of the company or its subsidiaries, with specific terms pending agreement.

The announcement stated that the coordination committee is composed of lenders who collectively hold or control approximately 48% of the outstanding principal amount of three syndicated loans from COUNTRY GARDEN (total outstanding principal of 3.6 billion USD), and they support COUNTRY GARDEN's ongoing efforts to implement the restructuring. The restructuring proposal intends to offer five economic options to holders/lenders of the debt within scope (collectively referred to as creditors) to convert their debt into Cash (via tender offer), mandatory convertible bonds, different notes and/or loan financing.

COUNTRY GARDEN offers creditors the following scheme: First, on the effective date of the transaction, the related debt held by creditors within scope will be sold back to the company via a tender offer in exchange for Cash, at a price at a discount to the debt's face value; Second, pure equity conversion; Third, term extension with partial equity conversion; Fourth, term extension with principal reduction; Fifth, only extending the maturity date without principal reduction, to accommodate the different preferences and needs of creditors.

Latest news from CHINA VANKE.

Recently, CHINA VANKE's popularity has also been rising. According to CHINA VANKE's latest announcement, subsidiary Shenzhen Bolan Rental & Leasing Services Co., Ltd. has applied for a 1.08 billion yuan, 30-year bank loan from Shanghai Pudong Development Bank and has completed the drawdown, with Shenzhen Bofan Housing Rental Management Co., Ltd., controlled by the company, providing guarantee for the loan.

In addition, CHINA VANKE's holding subsidiary Wuhan Yutian Industrial Real Estate Co., Ltd. is financing through an Insurance Funds real estate debt investment plan with Xinhua Assets, and as of now, the balance of this financing is 2.04 billion yuan, and the maturity date of this financing has been negotiated to be adjusted to December 31, 2026. CHINA VANKE continues to provide joint liability guarantee for this financing.

Yesterday, several domestic bonds of CHINA VANKE declined, with "0.22 million Vanke 02" once dropping over 15%, "0.22 million Vanke 06" dropping over 6%, "0.2 million Vanke 08" falling nearly 6%, "0.23 million Vanke 01" dropping nearly 5%, and "0.21 million Vanke 02" dropping over 2%. Today, several domestic bonds of CHINA VANKE still remain weak.

In response to the media, CHINA VANKE stated that it will do its utmost to address the public debt maturing in 2025 by raising funds from various aspects, including Operations and financing. CHINA VANKE emphasized that it will deal with related debt repayments through proactive sales and collections, continuous promotion of bulk transactions, accelerating the exit from non-core businesses, and persistently seeking financing resources.

Editor/rice