• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

China’s 2nd largest property developer is in big trouble

China’s 2nd largest property developer is in big trouble
Evergrande Group CEO Hui Ka Yan (Getty and Market Watch)

The hits keep coming for Evergrande Group, China’s second-largest property developer.

The company’s stock price has dropped more than 70 percent in the last year, its bonds are at record lows, it is in deep debt and on Monday, S&P Global Rating cut its credit rating two notches, according to Bloomberg.

A day after that, the firm’s stock price sank 13 percent after it announced it would not pay out a special dividend.

Evergrande is the world’s most indebted real estate developer with around $300 billion in liabilities, including some high-interest U.S. bonds. Around $7.4 billion worth of bonds mature next year, starting with $2 billion in bonds coming due next March.

The company has repaid all its public bonds this year, but could struggle with repayments in 2022 if it can’t access the capital markets.

A collapse of Evergrande could impact millions of Chinese homeowners and affect the wider economy, according to the report. The government could intervene to save Evergrande from disaster, but so far it isn’t certain that will happen.

“They really want to send a message that nobody is too big to fail,” TCV Group analyst David Loevinger told Bloomberg. “It is clear that mitigating systemic financial risks is a top priority.”

China’s other large real estate firms have also taken on large amounts of debt. They sold a combined $20.3 billion worth of bonds in the first half of this year, the second-highest total for that period since 2017.

The Chinese government is keeping a close eye on the real estate sector, and last year began to limit borrowing among developers and homebuyers.

[Bloomberg] — Dennis Lynch

[contact-form-7 404 "Not Found"]

The post China’s 2nd largest property developer is in big trouble appeared first on The Real Deal Los Angeles.

Powered by WPeMatico

  • 31 July 2021
  • The Real Deal
  • Uncategorized
  •  Like
Met Museum among art institutions to get “green” funding →← Susan Rice to co-chair home appraisal inequity task force
  • Recent Posts

    • Mayor Karen Bass blasts everyone but herself for wildfire mishandling May 7, 2025
    • WEA, Beverly Hills Estates cut deal on $27M Malibu Colony home May 7, 2025
    • Oil firm eyes homes, hotel near Bolsa Chica wetlands in Huntington Beach May 7, 2025
    • Bankrupt Rite Aid to market 1.3K stores, including dozens in LA County May 7, 2025
    • Carolwood flexes with new LA pocket listings portal, boasting $1B+ in inventory May 7, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM