[grotesqueness]

Imagine you are a real estate company you borrow $5B on bond market. Then you run into trouble ....bond holders think you are going bankrupt because your assets is now $4B and you owe $5B...negative equity!!! 

Bond holders start dumping bond causing it to drop from.$1 to 10cts ...

Seeing your bonfs are so cheap. You borrow $1B from you parent and buy up all your outstandung  bonds....then you cancel it. 

Now you are no longer bankrupt. You owe your parent $1B but have $4B in assets. You have net $3B in assets.

Bond holders lost....but most of it is savings...so nobody became bankrupt.

This is a way to transfer the property problem and solve the crisis...you just need money equal to 10% of the outstanding debt.

Chjnese govt is said to have activated Huarong to clean up the bad debts in thus manner for property companies on the white list.

they are the money laundering and scam operators