China’s Evergrande defaults on dollar debt
3 years ago

China’s Evergrande defaults on dollar debt

Al Jazeera  

China Evergrande Group has officially been labeled a defaulter for the first time, the latest milestone in a months-long financial drama that paves the way for a massive restructuring of the world’s most indebted developer. ‘Reckless expansion’ “The downgrade may not have an overt or immediate impact on the Chinese process, but may subtly increase pressure on the company to quickly reveal initial restructuring proposals,” said Brock Silvers, chief investment officer at Kaiyuan Capital in Hong Kong. The ratings cut may also trigger cross defaults on the developer’s $11.2 billion of outstanding dollar debt. The People’s Bank of China reiterated on Friday that risks posed to the economy by Evergrande’s debt crisis can be contained, citing the developer’s “own poor management” and “reckless expansion” for the problems it faces.

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History of this topic

China may pare its US debt holdings
9 months ago

China may pare its US debt holdings

China Daily  

A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. China may continue to reduce the share of US debt in its overall foreign exchange reserves amid its ramped-up efforts to diversify foreign asset portfolios, experts said on Wednesday. In the short term, factors like changes in monetary …

Evergrande: China property developer and founder accused of £60bn fraud
9 months ago

Evergrande: China property developer and founder accused of £60bn fraud

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Troubled property developer ChinaEvergrande Group …

China Evergrande is ordered to liquidate, with over $300 billion in debt. Here’s what that means
10 months, 3 weeks ago

China Evergrande is ordered to liquidate, with over $300 billion in debt. Here’s what that means

Associated Press  

A court in Hong Kong on Monday ordered China Evergrande to be liquidated in a decision that marks a milestone in China’s efforts to resolve a crisis in its property industry that has rattled financial markets and dragged on the entire economy. Evergrande, founded in the mid-1990s by Hui Ka Yan, it is the world’s most deeply indebted developer with …

China's top-selling to world's most indebted developer: What is Evergrande crisis
10 months, 3 weeks ago

China's top-selling to world's most indebted developer: What is Evergrande crisis

Hindustan Times  

A Hong Kong court ordered the liquidation of China Evergrande Group on Monday. Once China's top-selling developer, Evergrande's financial crisis became public in 2021 and since then it and a string of its peers have defaulted on their offshore debt obligations amid slowing home sales and fewer new avenues for fundraising, triggering fears of wider contagion that could spread to …

China Evergrande has been ordered to liquidate. The real estate giant owes over $300 billion
10 months, 3 weeks ago

China Evergrande has been ordered to liquidate. The real estate giant owes over $300 billion

Associated Press  

HONG KONG — A Hong Kong court ordered China Evergrande, the world’s most heavily indebted real estate developer, to undergo liquidation following a failed effort to restructure $300 billion owed to banks and bondholders that fueled fears about China’s rising debt burden. She said it was appropriate for the court to order Evergrande to wind up its business given a …

Why China Property Giant Evergrande Faces Liquidation
10 months, 3 weeks ago

Why China Property Giant Evergrande Faces Liquidation

Bloomberg  

Property giant China Evergrande Group is heading for liquidation after a Hong Kong court ordered it to be wound up. Evergrande defaulted on its bonds in December 2021, triggering protracted negotiations with creditors to hammer out a restructuring plan. Further funding problems sent the company’s stock and bonds tumbling and, after late payments on some dollar bonds, it missed a …

Chinese developer Evergrande risking liquidation if creditors veto its plan for handling huge debts
1 year ago

Chinese developer Evergrande risking liquidation if creditors veto its plan for handling huge debts

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy A Hong Kong court will …

China Evergrande’s founder under investigation, shares halted
1 year, 2 months ago

China Evergrande’s founder under investigation, shares halted

Al Jazeera  

World’s most indebted property developer did not say what were the ‘illegal crimes’ for which he was being investigated. China Evergrande Group’s founder is being investigated over suspected “illegal crimes”, the embattled developer said on Thursday, as creditors become increasingly concerned about the group’s prospects amid an uncertain debt revamp plan and liquidation risk. “They’ve managed to avoid the ‘bottom …

What does China Evergrande’s debt restructuring entail?
1 year, 4 months ago

What does China Evergrande’s debt restructuring entail?

Live Mint  

China Evergrande Group has filed for protection from creditors in a US bankruptcy court as part of its debt restructuring process, amid rising concerns over China’s worsening property crisis and a weakening economy. Evergrande's debt restructuring In March, the Evergrande group announced an offshore debt restructuring, expecting it to facilitate a gradual resumption of operations and generation of cash flow. …

Debt-ridden China developer Evergrande files for bankruptcy in US
1 year, 4 months ago

Debt-ridden China developer Evergrande files for bankruptcy in US

Al Jazeera  

Move will protect property giant’s assets in the United States as it attempts to restructure. China’s Evergrande Group, the world’s most indebted property developer, has filed for bankruptcy protection in the United States as it attempts to restructure and reach an agreement with creditors. Evergrande, once China’s top developer, defaulted on its more than $300bn in debt in 2021, becoming …

Can China’s Evergrande Group survive amid mounting debts, depleting resources?
1 year, 5 months ago

Can China’s Evergrande Group survive amid mounting debts, depleting resources?

Live Mint  

Concerns have been raised by creditors and analysts regarding the viability of China Evergrande Group's restructuring plan and operations. Adding to the unease, Evergrande's auditor commented that it could not provide an opinion on the reports due to material uncertainties surrounding the company's ability to sustain its operations as a going concern. Being burdened with one of the largest debt …

China Evergrande reports its debt rose to $340 billion in 2022. It plans meetings with creditors
1 year, 5 months ago

China Evergrande reports its debt rose to $340 billion in 2022. It plans meetings with creditors

Associated Press  

BEIJING — China Evergrande, the property developer whose woes helped bring about a slump in the country’s vitally important real estate market, has reported its debts rose further to about $340 billion by the end of last year. Regulators stepped in to supervise Evergrande’s debt restructuring, but apparently rejected a bailout to avoid sending the wrong message to companies about …

Chinese property giant Evergrande to pay $1.1 billion following indebtedness
2 years, 4 months ago

Chinese property giant Evergrande to pay $1.1 billion following indebtedness

Hindustan Times  

A unit of embattled Chinese developer Evergrande has failed to repay its loans and must pay a guarantor $1.1 billion, the company said in a Hong Kong stock exchange filing. The announcement comes after the company failed to publish a "preliminary restructuring proposal" by the end of July, despite assuring creditors it was on track to meet the deadline. Evergrande …

China's mortgage boycott is escalating. Now Evergrande suppliers have stopped paying bank loans
2 years, 4 months ago

China's mortgage boycott is escalating. Now Evergrande suppliers have stopped paying bank loans

ABC  

A fast-growing mortgage boycott across dozens of cities in China has prompted some property suppliers to cease their bank loan repayments, raising fears the escalating situation could trigger a further downward spiral in the sector and even threaten the country's financial stability. Key points: Some suppliers to defaulting developers, such as Evergrande, are refusing to make loan repayments It comes …

Xi’s Covid Zero Policy Prolongs Stress in China Real Estate Debt Market
2 years, 7 months ago

Xi’s Covid Zero Policy Prolongs Stress in China Real Estate Debt Market

Bloomberg  

Yields Top 22% as Covid-Zero Policy Stings China Dollar Bonds China Credit Tracker Share this article Fresh challenges are confronting Chinese borrowers in global debt markets after authorities doubled down on the nation’s Covid Zero policy. The focus remains on China’s offshore junk note market—dominated by property developers—after stress levels remained at their most elevated level in April, Bloomberg’s credit …

China's Evergrande baffled (and worried) after lenders claim $2 billion in cash
2 years, 9 months ago

China's Evergrande baffled (and worried) after lenders claim $2 billion in cash

Hindustan Times  

Chinese developer Evergrande said Tuesday it is investigating how lenders have laid claim to deposits valued at more than 13.4 billion yuan for its subsidiary, the latest black mark against the debt-ridden property giant. It announced Tuesday that one of its key units Evergrande Property Services Group had about $2.1 billion in cash that banks have laid claim to as …

Evergrande says it is on track to restructuring after shares suspended and billions seized by banks
2 years, 9 months ago

Evergrande says it is on track to restructuring after shares suspended and billions seized by banks

ABC  

Embattled Chinese developer Evergrande has assured investors it will unveil a debt restructuring proposal for its creditors by the end of July, after concerns about its financial health were renewed by a delay in publishing its annual results. Key points: Senior figures of the company held a call with global investors last night The company said it will not meet …

Chinese property developer giant Evergrande stops trading on Hong Kong Stock Exchange
2 years, 9 months ago

Chinese property developer giant Evergrande stops trading on Hong Kong Stock Exchange

Firstpost  

The suspension – the second this year – comes ahead of an expected $2 billion repayment obligation on Wednesday, and another next month of $1.4 billion Hong Kong, China: Troubled Chinese property developer giant Evergrande and all its units suspended trading in Hong Kong Monday morning, according to a notice to the stock exchange. “Accordingly, all structured products relating to …

China Credit Investors Brace for More Surprises From Hidden Debt
2 years, 10 months ago

China Credit Investors Brace for More Surprises From Hidden Debt

Bloomberg  

China Credit Investors Brace for More Surprises From Hidden Debt China Credit Tracker Share this article China’s credit markets are ushering in the new year with a fresh bout of stress, as scrutiny of hidden debt among the nation’s developers adds to turmoil in a sector facing mounting bills and limited fundraising options. Distress in the nation’s $870 billion offshore …

Evergrande’s debt crisis: International creditors threaten legal action over ‘opaque’ restructuring process
2 years, 11 months ago

Evergrande’s debt crisis: International creditors threaten legal action over ‘opaque’ restructuring process

CNN  

Hong Kong CNN Business — Evergrande’s international creditors are losing patience. A group of the company’s overseas bondholders are threatening to take legal action over its “opaque” debt restructuring process, the latest sign of trouble for the embattled Chinese developer. The firm’s “lack of engagement and opaque decision-making to date is contrary to well established international standards in restructuring processes …

Evergrande default signals volatility but no crash, analysts say
3 years ago

Evergrande default signals volatility but no crash, analysts say

Al Jazeera  

Analysts see China’s real estate market entering a period of stress but Beijing moving to contain fallout. The defaults of Evergrande and Kaisa – two of China’s largest property developers – signal a prolonged period of volatility for China’s indebted real estate market, but analysts expect that Beijing will contain the damage. Shehzad Qazi, managing director of China Beige Book …

Evergrande downgraded to default, ASX closes down, IMF warns of Omicron pain
3 years ago

Evergrande downgraded to default, ASX closes down, IMF warns of Omicron pain

ABC  

Australian shares have closed lower, with healthcare and tech stocks dragging on the market and Omicron restrictions tempering investor optimism overseas. Key points: Healthcare and utilities were the biggest drags on the ASX in early trade Ratings agency Fitch downgraded China Evergrande Group Wall Street finished its day mostly lower as markets await the latest US consumer inflation figures The …

Chinese real estate behemoth Evergrande, one other firm default on $1.6 billion in bonds
3 years ago

Chinese real estate behemoth Evergrande, one other firm default on $1.6 billion in bonds

Firstpost  

Following the development, Fitch Ratings agency has downgraded the Evergrande’s status to ‘restricted default rating’ Beijing, China: Two major Chinese property firms have defaulted on $1.6 billion worth of bonds to overseas creditors, Fitch Ratings agency said Thursday, as contagion spreads within the country’s debt-ridden real estate sector. The Chinese government sparked a crisis within the property industry when it …

Evergrande has defaulted on its debt, Fitch Ratings says
3 years ago

Evergrande has defaulted on its debt, Fitch Ratings says

CNN  

Hong Kong CNN Business — Evergrande, the embattled Chinese property developer, has defaulted on its debt, according to Fitch Ratings. The credit ratings agency on Thursday downgraded the company and its subsidiaries to “restricted default,” meaning that the firm has failed to meet its financial obligations. In another filing Monday, the company said it would set up a risk management …

Evergrande restructuring puts onus on Xi to limit fallout
3 years ago

Evergrande restructuring puts onus on Xi to limit fallout

Al Jazeera  

The question has loomed over China Evergrande Group for months: Is the world’s most indebted developer too big to fail? Evergrande, which disclosed more than $300 billion of total liabilities as of June, becomes the biggest victim of President Xi Jinping’s efforts to crack down on the free-wheeling real estate sector and curb property speculation. The People’s Bank of China …

Evergrande fails to make overdue coupon payments: sources
3 years ago

Evergrande fails to make overdue coupon payments: sources

Al Jazeera  

A failure to make $82.5m in interest payments would represent the developer’s first offshore default. Some offshore bondholders of China Evergrande Group did not receive coupon payments by the end of a 30-day grace period on Monday New York time, four people with knowledge of the matter have said. A failure to make $82.5 million in interest payments that had …

China tries to reassure on Evergrande as default fears rise
3 years ago

China tries to reassure on Evergrande as default fears rise

Associated Press  

BEIJING — China’s central bank expanded the supply of money for lending Monday as Beijing tried to reassure its public and investors the economy can be protected if a troubled real estate developer’s $310 billion mountain of debt collapses. The People’s Bank said it wants to “support development of the real economy.” It said the reserve cut was no change …

Evergrande debt crisis: Chairman has sold $1.1 billion worth of his personal assets to prop up the company, Chinese state media reports
3 years, 1 month ago

Evergrande debt crisis: Chairman has sold $1.1 billion worth of his personal assets to prop up the company, Chinese state media reports

CNN  

Hong Kong CNN Business — Evergrande chairman Xu Jiayin has sold more than 7 billion yuan worth of personal assets to prop uphis embattled company, Chinese state media reported this week. Xu has sold several houses in Hong Kong, GuangzhouandShenzhen, as well as some private jets, the state-owned China Business News reported Tuesday, citing anonymous sources close to the matter. …

Evergrande has reportedly made good on another payment, averting default once again
3 years, 1 month ago

Evergrande has reportedly made good on another payment, averting default once again

CNN  

Hong Kong CNN Business — For the second time this month, China’s most indebted developer Evergrande has reportedly managed to avoid default at the last minute. Friday’s reports come a week after Evergrande reportedly paid $83.5 million worth of overdue interest on a dollar bond — also shortly before an expiring grace period. Evergrande’s mainland Chinese division, Guangzhou Kailong Real …

As Evergrande fears linger, Beijing says it’s time for companies to pay their offshore debts
3 years, 1 month ago

As Evergrande fears linger, Beijing says it’s time for companies to pay their offshore debts

CNN  

Hong Kong CNN Business — Beijing is making one thing clear to the country’s embattled property developers: Pay your debts. The agencies said that they want companies to settle foreign debt to protect those firms’ reputations, as well as the “overall order of the market.” When Evergrande first warned last month that it could default, stocks in Hong Kong, New …

Evergrande shares plunge as Chinese property developer faces another debt deadline
3 years, 1 month ago

Evergrande shares plunge as Chinese property developer faces another debt deadline

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Chinese property giant Evergrande’s stock …

China’s real estate crisis: Evergrande and these developers are already in trouble
3 years, 1 month ago

China’s real estate crisis: Evergrande and these developers are already in trouble

CNN  

CNN Business — China’s real estate crisis isn’t showing any sign of letting up. They could Earlier this month, the People’s Bank of China said that Evergrande had mismanaged its business, but risks to the financial system were “controllable.” And at financial forum in Beijing last week, Chinese Vice Premier Liu He stressed that risks were generally under control, despite …

China’s real estate crisis: Evergrande and these developers are already in trouble
3 years, 1 month ago

China’s real estate crisis: Evergrande and these developers are already in trouble

CNN  

CNN Business — China’s real estate crisis isn’t showing any sign of letting up. They could Earlier this month, the People’s Bank of China said that Evergrande had mismanaged its business, but risks to the financial system were “controllable.” And at financial forum in Beijing last week, Chinese Vice Premier Liu He stressed that risks were generally under control, despite …

Evergrande stock surges after report that it made an important bond payment
3 years, 2 months ago

Evergrande stock surges after report that it made an important bond payment

CNN  

Hong Kong CNN Business — Evergrande has made a crucial payment that allows it to stay out of default, at least for now, according to Chinese state media. State-run financial newspaper Securities Times reported Friday that the embattled property conglomerate had made an $83.5 million interest payment on a dollar-denominated bond that was due last month. According to Jeffrey Halley, …

Evergrande conundrum
3 years, 2 months ago

Evergrande conundrum

The Hindu  

China’s Evergrande group, identified as the world’s most indebted property developer with accumulated liabilities in excess of $300 billion, missed an interest payment instalment due on September 23, 2021, on bonds borrowed through U.S. dollar bond markets. Growth and web of debt Property sector investment accounts for a large share of the more than 40 per cent of the GDP …

The Evergrande crisis and how Xi is remaking China's economy | In Focus podcast
3 years, 2 months ago

The Evergrande crisis and how Xi is remaking China's economy | In Focus podcast

The Hindu  

In this episode, we go deep into the crisis at Chinese real estate giant Evergrande and examine the reasons and fall-out. Are there likely wider ramifications for China's economy, as well as for countries, including India, which counts on China as its largest trading partner with a trading relationship predicated on continued Chinese appetite for commodities? What do the Evergrande …

Chinese banks try to calm fears about developer’s debts
3 years, 3 months ago

Chinese banks try to calm fears about developer’s debts

Associated Press  

BEIJING — Trying to dispel investor fears, some Chinese banks are disclosing what they are owed by a real estate developer that is struggling under $310 billion in debt and say they can cope with a potential default. Evergrande’s struggle to meet government-imposed debt limits has prompted fears a default might disrupt the Chinese economy or global financial markets. One …

Evergrande Group meets crucial debt deadline but another looms
3 years, 3 months ago

Evergrande Group meets crucial debt deadline but another looms

CNN  

Hong Kong CNN Business — China’s Evergrande Group will pay interest due Thursday on one of its bonds, but it’s keeping rattled investors guessing about the fate of second, bigger payment due this week. “There appears to be an acceptance that an Evergrande failure is more a matter of when and not if, and the real question is how any …

Evergrande stock surges as debt deadline passes. It’s not in the clear yet
3 years, 3 months ago

Evergrande stock surges as debt deadline passes. It’s not in the clear yet

CNN  

Hong Kong CNN Business — It’s crunch time for China’s heavily-indebted Evergrande Group. “We don’t expect government actions to help Evergrande unless systemic stability is at risk,” said S&P Global Ratings analysts in a research report earlier this week. “A government bailout would undermine the campaign to instill greater financial discipline in the property sector.” Instead of a bailout, the …

Global investors rattled as Evergrande struggles with debt: All you need to know about China's biggest builder’s troubles
3 years, 3 months ago

Global investors rattled as Evergrande struggles with debt: All you need to know about China's biggest builder’s troubles

Firstpost  

Evergrande is the biggest casualty yet from the ruling Communist Party’s effort to rein in surging debt levels Beijing sees as a possible threat to the economy. Beijing: Global investors are watching nervously as one of China’s biggest real estate developers struggles to avoid defaulting on tens of billions of dollars of debt, fueling fears of possible wider shock waves …

EXPLAINED: The Evergrande Crisis And What It Means For Markets
3 years, 3 months ago

EXPLAINED: The Evergrande Crisis And What It Means For Markets

News 18  

Troubles at one of China’s biggest real estate companies has triggered speculation whether it could be the ‘Lehman Brothers moment’ for the world’s second biggest economy, drawing parallels with the collapse of the US bank in 2008 amid the bursting of the housing bubble that sparked a global financial crisis. The company, which is being described as “the world’s most …

China's real estate house of cards could be brought down by Evergrande, the world's most indebted company
3 years, 3 months ago

China's real estate house of cards could be brought down by Evergrande, the world's most indebted company

ABC  

It was once a darling of China's booming property sector, expanding into football teams, infant formula and electric cars. One of the nation's largest real estate developers, the company claims to own more than "1,300 projects in more than 280 cities in China and is a forerunner in delivering all houses with fine decoration". Beijing draws three red lines Evergrande's …

As Evergrande stock sinks, Chinese conglomerate puts on a brave face but will Beijing bail it out?
3 years, 3 months ago

As Evergrande stock sinks, Chinese conglomerate puts on a brave face but will Beijing bail it out?

CNN  

Hong Kong CNN Business — Evergrande’s chairman promised his employees Tuesday that they will “walk out of the darkness” caused by the embattled Chinese conglomerate’s historic debt crisis. “I am convinced that through the joint efforts and hard work of leaders and employees at all levels, Evergrande will surely walk out of thedarkness as soon as possible,” he wrote.Xu added …

Evergrande shares plummet as Chinese property giant's debt issues deepen
3 years, 3 months ago

Evergrande shares plummet as Chinese property giant's debt issues deepen

India TV News  

Chinese company Evergrande has started to repay investors in its wealth management business with property, as the world's most indebted real estate developer faces a key test this week, the BBC reported. Major banks have reportedly been told that they won't receive interest payments on loans that are due Monday, while interest payments of $84m on the firm's bonds are …

Chinese property developer’s debt struggle rattles investors
3 years, 3 months ago

Chinese property developer’s debt struggle rattles investors

Associated Press  

BEIJING — One of China’s biggest real estate developers is struggling to avoid defaulting on billions of dollars of debt, prompting concern about a broader economic fallout and protests by buyers of unfinished apartments. An outright default might dent consumer confidence if homebuyers suffer losses, “but we assume the government would act to protect households’ interests, making this outcome unlikely,” …

The Delta Covid variant is hitting China’s economy hard, and a property crunch is looming
3 years, 3 months ago

The Delta Covid variant is hitting China’s economy hard, and a property crunch is looming

CNN  

Hong Kong CNN Business — China’s dramatic steps to contain the coronavirus this summer have taken a toll on consumer confidence inthe country and are fueling concerns aboutthe strengthof the world’s second largest economy. Industrial production rose 5.3% in August from a year earlier, also slower than July and the weakest growth generated by China’s factoriesin a year. “The headwinds …

What could an Evergrande debt default mean for China and beyond?
3 years, 3 months ago

What could an Evergrande debt default mean for China and beyond?

Al Jazeera  

The central question is whether China’s authorities plan to allow Evergrande’s creditors to suffer major losses or whether the country’s communist government, which prizes stability and control, plans to intervene in some way. The central question is whether Chinese authorities plan to allow Evergrande’s creditors to suffer major losses or whether the country’s communist government, which prizes stability and control, …

Evergrande, Chinese property giant, warns again that it could default on its enormous debts
3 years, 3 months ago

Evergrande, Chinese property giant, warns again that it could default on its enormous debts

CNN  

Hong Kong CNN Business — Evergrande is once again warning that it could default on its huge debts as it struggles to cut costs or find anyone to buy some ofits assets. But on Tuesday, Evergrande acknowledged its difficulty in finding buyers for its assets, saying that “it is uncertain as to whether the group will be able to consummate …

Premarket stocks: There’s another big risk brewing in China
3 years, 3 months ago

Premarket stocks: There’s another big risk brewing in China

CNN  

A version of this story first appeared in CNN Business’ Before the Bell newsletter. “China’s leadership is presumably reluctant to offer a bailout to Evergrande, given the desire to punish reckless behavior by private entrepreneurs and discourage speculative property investment,” he wrote. “But given the firm’s sheer size and systemic role, officials would step in to try to ensure an …

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