According to reports, on the evening of November 8, China Evergrande issued an announcement announcing the termination of its restructuring plan with the A-share company Shenzhen Real Estate. This made investors who held Shenzhen Real Estate stocks before the suspension Yan may be a little disappointed. After all, he has been waiting for 4 years and has been looking forward to the success of the restructuring plan of these two companies, but in the end it came to nothing. The failure of the restructuring of Evergrande and Shenzhen Real Estate is actually related to the fact that the current regulatory authorities adhere to the policy of "housing is for living, not for speculation", and the financing of real estate companies is also strictly controlled at all levels. In recent years, in order to promote the healthy and steady development of the real estate industry and advocate "housing for living, not speculation", the state has continuously increased its control over the real estate industry. The country also launched the "Three Red Lines" policy this year, and strengthened the supervision and investigation of down payment loans and consumer loans flowing into the housing market, curbing the influx of other credit funds, and strictly preventing the blind expansion of the real estate industry, coupled with the challenges in real estate financing. The tightening of policies will put a lot of pressure on many real estate companies with relatively weak funds and high debt. After all, many real estate companies relied heavily on financing loans in the past. Once financing is insufficient, operations will be difficult, but it will be beneficial to funds. Facing leading large real estate companies with relatively low debt and good management, the future of real estate companies is likely to be a survival of the fittest situation. For Evergrande, thanks to the rapid development during the dividend period in the past few years, the scale of expansion has also become huge. However, it has also brought huge pressure to it, especially as the country's policies on real estate development have tightened and increased Deleveraging promotes healthy and steady development of real estate. Like many real estate companies, Evergrande is also feeling pressure due to large debts. Lowering the debt ratio is in front of Evergrande. It had previously hoped to successfully restructure and return with Shenzhen Real Estate. A-shares, this will help improve its financing environment and ease financial tensions. The reorganization of both parties failed. What was more worrying before was the issue of Evergrande's 130 billion war investment fund. However, Evergrande's announcement has stated that these problems have been solved by Evergrande. Evergrande only needs to repurchase 3 billion war investment funds. The rest will continue to be held by war investors. Evergrande has also been continuously innovating itself this year. It has reduced its debt ratio considerably and has well controlled its development scale. In addition, its recent sales performance is not bad and it has withdrawn a lot of funds. This has relieved the pressure on capital flow to a certain extent and also A lot of debts have been repaid, and the burden reduction effect is pretty good. Evergrande is also making plans to spin off other businesses and go public to increase asset value and improve financing capabilities. In recent times, Evergrande has been gradually getting rid of the pressure of high debt and has begun to develop steadily.