Tag: China Evergrande Group

China Evergrande, Giant Developer, Files for Bankruptcy

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China Evergrande, a behemoth property developer, filed for bankruptcy protection on Thursday more than two years after it defaulted on its debt. The company’s meltdown in 2021 was followed by the defaults of smaller developers and signaled the start of a slow decay of China’s real estate sector that now threatens to inflict damage on the country’s broader economy. Another giant developer, Country Garden, is staring down a default of its own after missing payments to lenders and holding $200 billion in unpaid bills. Evergrande’s bankruptcy petition, filed in the…

Country Garden’s Stock Plunges After Report of Huge Losses

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It was considered the gold standard in China’s increasingly shaky housing market. Now investors are treating Country Garden, the giant property developer, like a ticking time bomb. The company, China’s last major real estate giant to avoid default, has hinted at its financial troubles for weeks. On Thursday night, it was more direct: Country Garden said it expected a loss of up to $7.6 billion over the first six months of this year. The company’s shares, which trade in Hong Kong, took a dive on Friday, dragging its value to…

Country Garden Is Latest Property Giant in China to Run Into Trouble

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Remember China Evergrande, that Chinese property behemoth whose mountain of debt sent global markets spiraling in 2021? Its collapse later marked the start of a crisis for China’s housing market, where sales of apartments ground to a halt and developers big and small found themselves unable to pay their bills. Now, financial troubles at Country Garden, another property giant, are raising fresh concerns. It is also a flashing warning sign about China’s economy. Country Garden, the country’s biggest property developer by sales, has been pummeled in the markets twice in…

Real Estate Crisis Is at the Heart of China’s Economic Troubles

Chin@Strategy

For decades, buying property was considered a safe investment in China. Now, instead of building a foundation of wealth for the country’s middle class, real estate has become a source of discontent and anger. In more than 100 cities across China, hundreds of thousands of Chinese homeowners are banding together and refusing to repay loans on unfinished properties, one of the most widespread acts of public defiance in a country where even minor protests are quelled. The boycotts are part of the fallout from a worsening Chinese economy, slowed by…

China’s Economy Slowed Late Last Year on Real Estate Troubles

Chin@Strategy

BEIJING — Construction and property sales have slumped. Small businesses have shut because of rising costs and weak sales. Debt-laden local governments are cutting the pay of civil servants. China’s economy slowed markedly in the final months of last year as government measures to limit real estate speculation hurt other sectors as well. Lockdowns and travel restrictions to contain the coronavirus also dented consumer spending. Stringent regulations on everything from internet businesses to after-school tutoring companies have set off a wave of layoffs. China’s National Bureau of Statistics said Monday…

With Property Sales Plunging, China Evergrande Faces More Protests

Chin@Strategy

Protesters gathered outside China Evergrande offices in Guangzhou on Tuesday to demand that the indebted real estate developer give them their money back, as the company’s sales across China continued to plunge. Evergrande, the world’s most indebted developer, has tried for months to signal to home buyers, employees and investors that its $300 billion debt problem was under control. Just last week, its billionaire founder pledged to restart construction on its many stalled sites. But the challenges keep mounting. On Tuesday, Evergrande said that property sales fell 39 percent last…

China Evergrande Suspends Trading Shares in Hong Kong

Chin@Strategy

Trading in the shares of the indebted property developer China Evergrande Group were suspended on the Hong Kong Stock Exchange Monday morning as the company raced to deliver apartments to millions of home buyers and raise cash to manage its $300 billion in debt. Evergrande said in a filing that its shares were halted pending an announcement “containing inside information,” without giving more details. The company had halted its shares once before, in October, as it tried to finalize the sale of a $2.6 billion stake in its property management…

Your Monday Briefing: South Africa’s Parliament Burns

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Good morning. We’re covering a fire in South Africa’s Parliament, a breach in the Demilitarized Zone between North Korea and South Korea, and possible changes to women’s rights in China. South Africa’s parliament burns A large fire damaged much of the Houses of Parliament on Sunday. Officials warned that the damage to the historic complex would be extensive. Officials said the fire spread from an office space on the third floor of a building adjacent to the old National Assembly building. Cape Town’s Fire and Rescue Service spokesman warned that…

What Default? With Confetti and Fanfare, Evergrande Says It’s Ready to Build.

Chin@Strategy

To mark the completion of a residential complex called World City, the indebted property giant China Evergrande Group held an elaborate red carpet ceremony on Monday, with eight cannons firing off confetti before a cheering crowd. The company then released a series of images featuring newly completed buildings covered with bright red decorations. Just weeks earlier, Evergrande had been declared in default. The developer has unpaid bills in excess of $300 billion and has struggled to pay back its creditors and business partners. Some in China saw the company’s celebrations…

China Evergrande Defaults on Its Debt, Fitch Says

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HONG KONG — China Evergrande has defaulted on the debt it owes to global investors, one credit rating firm said on Thursday, as questions swirled about how Beijing would fix a debt-laden property company that has come to symbolize the problems plaguing the world’s second-largest economy. The firm, Fitch Ratings, said in a statement that it had placed the Chinese property developer in its “restricted default” category. The category means that China Evergrande had formally defaulted but had not yet entered into any kind of bankruptcy filing, liquidation or other…