BBC (January 28)
“Debt-ridden Chinese property giant Evergrande has been ordered to liquidate by a court in Hong Kong.” Evergrande initially “sent shockwaves through global financial markets” when it defaulted in 2021. Since then, it has remained “the poster child of China’s real estate crisis with over $325bn (£256bn) of liabilities.” The most recent court decision does not necessarily mean “Evergrande will go bust and collapse,” but it is expected “to send ripples through China’s financial markets at a time when authorities are trying to curb a stock market sell-off.”
Tags: 2021, China, Collapse, Court, Crisis, Debt-ridden, Defaulted, Evergrande, Financial markets, Hong Kong, Liabilities, Liquidate, Real estate, Ripples, Shockwaves
Reuters (January 28)
“A growing number of Chinese construction and decoration companies are writing off assets or issuing profit warnings as debt woes at China Evergrande Group and other property developers debilitate their suppliers.” Despite government measures “to ease developers’ liquidity stress and support the cooling economy, recent data suggests the problem will get worse.”
Tags: Assets, China, Companies, Construction, Debt, Evergrande, Government, Liquidity, Profit warnings, Property developers, Suppliers, Woes
Financial Times (January 28)
“Oaktree Capital is risking a showdown with Beijing over control of one of ailing property developer Evergrande’s most-prized projects in mainland China.” Seizing “the Venice development could have a profound effect on the wider restructuring of Evergrande, the property developer that has scrambled to reassure its creditors since its finances started to unravel last year.”
Tags: Ailing, Beijing, China, Control, Creditors, Evergrande, Oaktree Capital, Property developer, Restructuring, Risking, Showdown, Venice development
Sydney Morning Herald (December 6)
“The crisis at the teetering giant Chinese property developer, China Evergrande, appears to be reaching a decisive moment, with the world’s most indebted property company conceding that it may be unable to meet the demand for repayment.”
Tags: China, Crisis, Decisive moment, Evergrande, Indebted, Property developer, Repayment, Teetering, Unable
Bloomberg (October 13)
“The vital question for many investors has been whether the problems for speculative real estate will cause broader contagion, either through cascading losses in the financial system or through economic weakness.” The former remains unlikely, but “the second — an economic slowdown of which Evergrande is both a cause and a symptom — grows more likely with time.”
Tags: Cascading, Contagion, Economic weakness, Evergrande, Financial system, Investors, Losses, Real estate, Slowdown, Speculative, Vital
Bloomberg (October 1)
“The Evergrande fear has receded too easily for comfort… Even without a crisis, the stricken developer will do significant damage to a Chinese economy that already appeared to be slowing.”
Financial Times (September 22)
“While Evergrande’s US dollar bonds are trading at levels that suggest default, Beijing is unlikely to allow the company’s woes to proliferate to the point at which they risk creating a systemic crisis. The correct way to view the Evergrande meltdown is to see it as a controlled explosion. Beijing is teaching the developer a very public and painful lesson.”
Tags: Beijing, Bonds, Controlled, Default, Evergrande, Explosion, Lesson, Meltdown, Painful, Risk, Systemic crisis, Trading
