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. Fitch said the downgrade reflects the company’s inability to pay interest due earlier this week on two dollar-denominated bonds. The payments were due a […]
Evergrande
Evergrande debt crisis: Chairman has sold $1.1 billion worth of his personal assets to prop up the company, Chinese state media reports
Xu has sold several houses in Hong Kong, Guangzhou and Shenzhen, as well as some private jets, the state-owned China Business News reported Tuesday, citing anonymous sources close to the matter. The cash, which Xu has been pumping into Evergrande since the beginning of July, has been used to “maintain […]
Evergrande crisis: US Fed warns China’s property problems could hurt global markets and the US economy
The US central bank warned Monday that China’s ongoing property woes could elevate “financial stresses in China, [which] could further strain global financial markets and negatively affect the United States.” In its biannual report on financial stability, the Fed pointed specifically to the crisis at Evergrande, China’s most indebted developer. […]
Evergrande crisis shines a light on China’s millions of empty homes
For weeks, the ailing Chinese real estate conglomerate has made headlines as investors wait to see what will happen to its enormous mountain of debt. As the slow-moving crisis unfolds, analysts are pointing to a deeper underlying issue: China’s property market is cooling off after years of oversupply. Chinese authorities […]
Evergrande, Chinese property giant, warns again that it could default on its enormous debts
The embattled Chinese property giant has already warned in recent weeks of its cash crisis, listing $300 billion in total liabilities and saying that it could default if it’s unable to raise money quickly. Should that happen, the effects would be felt across China’s banking system and the wider economy. […]