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Shuli Ren

Evergrande Isn’t HNA. It Might Be Worse.

A restructuring of the troubled real estate developer is looming and the likelihood that foreign investors will make up some of their losses is diminishing.

Evergrande and Hengda. Same meaning, different entities.

Evergrande and Hengda. Same meaning, different entities.

Photographer: SOPA Images

A major restructuring is looming at China Evergrande Group. The nation’s second-largest real estate developer has been in talks to sell equity stakes to third-parties; and its billionaire founder Hui Ka Yan has stepped down as chairman of Hengda Real Estate, its main asset in the mainland, according to National Enterprise Credit Information Publicity System, a website that maintains the public records of local companies. 

Is this good or bad news? Hengda and Evergrande mean the same thing in different languages. The first is the Chinese pinyin translation of the second. But they are now essentially two different corporate entities, and it’s likely foreign investors will be lost in the translation.