In the harsh winter of the real estate market, those soccer club projects with poor capital return are often the first to become victims. Shenzhen fans were worried about the future of the Shenzhen team, especially when news of the default of Jiazhao Ye's financial products suddenly spread on social media in the late afternoon of Nov. 3. In the early hours of Nov. 4, many investors in financial products flocked to Jiazhao Ye's Shenzhen Kerry Center office to seek a solution. Shortly afterward, the discussion moved to the Friendship Hotel, where nearly 1,000 investors, most of them owners of JIA Zhaoye, gathered at the scene, involving funds of up to 12.7 billion yuan. CEO Mai Fan personally confirmed that Glorious Property has been under tremendous operational pressure over the past year, and despite efforts to pay off financial institutions, partners and wealth products, the company has been experiencing "temporary financial difficulties" since October 29th, and is unable to pay off investor principal and interest. The chairman of the board of directors of Glorious Property Group, Guo Yingcheng, also connected with investors through audio, said that although he was hospitalized for health reasons, but emphasized that Glorious Property is a responsible enterprise, promised to try to solve the problem, and asked investors to remain calm and give the company time.
Earlier, there were rumors that JIA Group was planning to sell a 67.2% stake in its property management company, JIA Wonderful Group Limited, as well as two Hong Kong residential land parcels that had been purchased only a year ago. Over the next year, Glorious will need to repay about $3.2 billion in debt, with a $400 million bond due to mature on Dec. 7. On Nov. 4, Glorious shares plunged more than 15 percent, making the capital market's concerns about Glorious self-efficacy self-evident. Meanwhile, Shenzhen regulators announced that they would hold a special meeting on Nov. 5 to discuss the liquidity problems of JIA Zhaoye and Huadian.
If Jiazhaoye's predicament is "temporary", as Mai Fan said, then the prospects of the Shenzhen team are naturally worrying. In the new season, the Shenzhen team signed a number of top players, both local and foreign aid, strength are not to be underestimated, the team's performance in the league has been stable, the position of the championship group is solid. However, if Jia Zhaoye suffered a financial liquidity crisis, the Shenzhen team may also be affected. Looking back at history, in 2014, Jia Zhaoye also suffered a cash flow break, leading to the plight of bond defaults, when the crisis was even more serious. But with the assistance of a number of banks, JIA Zhaoye eventually turned the crisis into a safe place, and with the help of the rise of the Shenzhen property market to realize the turnaround. This crisis, whether Jiazhaoye can once again turn danger into safety, so that investors and fans of the Shenzhen team to rest assured, is still unknown. (New Vision of Sports)
