Evergrande is one of the largest private conglomerates in China and the most indebted developer in the world. The company became rich during decades of rapid growth as Chinese reforms opened up the economy. Other times, however, he has struggled with problems selling real estate. She warned last week that “Continuing negative news in the media is damaging its sales in September, and thus the group’s cash generation and liquidity”.
China, the second largest developer, has liabilities of more than $ 300 billion (€ 256.17 billion), equivalent to 2% of the Asian country’s gross domestic product (GDP). Evergrande is trying to raise funds to pay its debts to creditors and suppliers in an effort to stop the liquidity crisis and prevent its collapse.
Evergrande’s management believes it will overcome the problems
The Chinese development group China Evergrande Group is convinced that “Will overcome its darkest period”. This was stated on Tuesday in a letter to employees of Hui Kcha Yuan, chairman of the board of the company, which is struggling with debts. In a letter, Chuej Kcha Yüan acknowledged the hard work of the employees and said that Evergrande would hand over real estate projects as it had committed itself, fulfilling its obligations to real estate buyers, investors, partners and financial institutions.
“I firmly believe that, thanks to your joint efforts and hard work, Energrande will go through the darkest period, rebuild large-scale buildings as soon as possible and achieve the key goal of delivering real estate projects as promised.” said Hui Kcha Yuan, not stating how the company wants to achieve these goals.
Source: SITA / AP Photo / Andy Wong
There is a threat of chaos in the world economy
Shares of the company listed on the Hong Kong Stock Exchange fell by 84% this year. The risk of default on its debts has raised concerns in global financial markets, as investors fear the “contagion” will spread to the Chinese economy and could cause chaos in the global economy.
The value of Evergrande shares fell by 12.2% on Monday to 9.40 am CET after a previous fall of 19% to its lowest level since May 2010. “Shares will continue to fall because there is no solution yet to help companies alleviate liquidity stress and there is still a lot of uncertainty about what they will do in the event of restructuring.” said Kington Lin, director of asset management at Canfield Securities Limited.
Source: SITA / AP Photo / Andy Wong
The problems are getting worse
Evergrande is due to pay interest on $ 83.5 million for the bond maturing in March 2022 on September 23. And on September 29, she will receive additional interest payments of $ 47.5 million on bonds due in March 2024.
The rating agency S&P Global Ratings has already responded to the development, lowering the company’s main credit rating and its components to CC. According to S&P analysts, it is clear that the company has run out of liquidity. S&P Global’s approach suggests that the company’s bankruptcy scenario is virtually certain, Reuters reports.
Political leaders in China are still silent
Standard & Poor’s Global does not expect Beijing to provide any direct support to China Evergrande Group, which risks not paying interest on maturing bonds on time. S&P believes that Beijing will not intervene until the “contagion” begins to spread and Evergrande’s problems “spill over” to other major developers, posing a systemic risk to the Chinese economy.
Panic on the Hogkong Stock Exchange, the tycoon lost a billion
Shanghai chief development firm Sinic Chang Yuanlin lost more than $ 1 billion on Monday as fears of a possible collapse of real estate giant Evergrande caused panic on the Hong Kong Stock Exchange.
Sinic Holdings Group was forced to stop trading in its shares on Monday after their price fell by 87%. The chairman’s net worth fell from $ 1.3 billion (€ 1.1 billion) to $ 250.7 million.
Chang Yuan-lin was on Forbes magazine’s list of billionaires only this year. He earned on apartments in high-rise buildings, which is now a very vulnerable market segment, as the possible collapse of real estate giant China Evergrande is causing panic.
Download From Beyond & Sauco – Control Engine – EP Album Mp3 Zip
Download Tot Taylor – Frisbee Album Mp3 Zip
Download Cauty – INFRAVALORADO Album Mp3 Zip
Download Brit Taylor – Real Me (Deluxe) Album Mp3 Zip
Download Pat Byrne – Into the Light Album Mp3 Zip
Download Various Artists – Anjunadeep Pres. Reflections Vol. 3 Album Mp3 Zip
Download Fine and Great – How To Survive By Getting By – EP Album Mp3 Zip
Download Beat Bizarre – Lewd (Remastered 2021) Album Mp3 Zip
Download Ahmed Helmy, Ocata & Doppenberg – A State of Trance – Selections 001 Album Mp3 Zip
Download Beat Bizarre – Lewd (Remastered 2021) Album Mp3 Zip
Download Devin Tracy – don’t take it personal – EP Album Mp3 Zip
Download 右脳くん – ASMR – 耳マッサージ屋さんロールプレイ -ぺたぺた じゅわあ- (feat. ASMR by ABC & ALL BGM CHANNEL) Album Mp3 Zip
Download Nea Marten – Träume Album Mp3 Zip
Download Tot Taylor – Frisbee Album Mp3 Zip
Download Geva Alon – Follow Album Mp3 Zip
Download U-Roy, I-Roy & Dennis Alcapone – Reggae Greats: U – Roy, I – Roy and Dennis Alcapone Album Mp3 Zip
Download L.A. Guns – Cocked & Loaded Live Album Mp3 Zip
Download Inhaler – It Won’t Always Be Like This (Deluxe) Album Mp3 Zip
Download Saving Abel – Shade of Grace 20 Year Songs – EP Album Mp3 Zip
Download Jahvillani – Dirt To Bentley Album Mp3 Zip
Download Flyo – Keep Your Distance – EP Album Mp3 Zip
Download Toby Hitchcock – Changes Album Mp3 Zip
Download Brit Taylor – Real Me (Deluxe) Album Mp3 Zip
Download ¥ALLA, Maya Lu & Kuqler – Sunshine Tape – EP Album Mp3 Zip
Download Eduardo Costa – Live dos Namorados Album Mp3 Zip