Bloomberg China Inquiry into Hui Ka Yan’s Evergrande Group and Its Relationships with Zhang Jindong, founder of Suning and majority shareholder of Inter. Last month there was an agreement between Hui and Zhang to avoid a serious monetary shortfall, so much so that in the signing ceremony the two were side by side. Evergrande has $ 120 billion in debt, with its shares falling 16% – to an all-time low – the week before. Suning then gave Evergrande a lifeline because the two groups’ business interests are closely linked.
BY JANUARY – Some doubts about Evergrande’s relationship with Suning came when – prior to last month’s agreement – Zhang’s holding company asked to return its investment if a unit of Evergrande failed to go public on the domestic market by January . News that – again according to Bloomberg – which raised doubts about Suning’s financial health after the Coronavirus: the flagship Suning.com had a decline in revenues of 13% and a loss of 21.2 million in the first half of 2020 (compared to the +270.4 profit in the same period of the previous year).
LOW FIGURES – It is clear that for an empire like Suning it is a drop in the bucket, but Suning.com is the one that drives the group, with more prosperous accounts than the others. However, this does not include the risk factors that are becoming increasingly intense in retail, due to the lower availability of the Chinese after the pandemic.
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