The collapse of China’s real estate sector is a sign of a lack of sign, as many businesses are threatening to fail – although there are differences due to the result of huge debt. Evergrande.
All eyes will be on China dealer Sinic Holdings, who warned last week that it will not pay off the $ 250 million debt it paid off on Monday. There was never a voice from the landlord like noon. has reached the company.
On Friday, another investor, China Properties Group, said it had lost $ 226 million because it would not make money on May 15.
They were not the first – Fantasia Holdings failed to transfer the $ 206 million payroll debt in early October.
Last week the index team announced a new basic wage for Chinese commercial companies.
This week, Evergrande will collapse if he does not pay interest on a US dollar foreign loan – the payment was paid at the end of September but there are 30 days of grace. The company has been silent on the payment of vouchers for four other debts paid over the past few weeks.
These improvements come as China’s central bank said Friday that the risks posed by Evergrande could “work,” and many domestic housing businesses are stable.
However, China’s People’s Bank also says that asset companies that have issued foreign loans – known as foreign loans – must tighten their payments.
On Sunday, Governor Yi Gang made further remarks. He said officials would try to prevent Evergrande’s problems from spreading to other real estate industries, according to a Reuters report.
He also called China’s economy “good”, but still faces challenges such as the unforeseen risks of “bad governance” by other companies, the group said.
China’s debt has risen sharply after years of high debt, forcing officials to abandon the “three red lines” policy last year. The plan eliminates the company’s cash flow, assets, and financial concerns.
Things came to an end when the policy began to be implemented in the producers. The world’s largest debtor, Evergrande, has twice warned this month that it could be overlooked.
He recently lost three interest payments on his US dollar loan. The goods have been in place since May 4, and the sales offices have raised concerns with other businesses about their salaries.
China’s retail trade has risen by $ 1 billion since October, up from $ 600 million in August, according to data from technology fund MarketAxess. The Evergrande facility is expected to grow in 2025 by 2025, making it the second-highest number of operations performed from its platform.
More ratings downgrades
Some Chinese retail stores had a new cycle last week.
has received feedback from every company but has not yet listened.
1. China Aoyuan
On Friday afternoon, S&P Global Ratings kicked off China Aoyuan, one of the biggest events in the Chinese province of Guangdong known as the Great Bay Area. The group wrote about its debt and said the company’s efforts to reduce debt would be reduced in the coming year.
He also announced Aoyuan’s “huge” debt in 2022, which will put a lot of pressure on the real estate company.
“The company’s narrow-minded approach to rising growth and inflation will hamper recovery efforts. A declining generation will also boost Aoyuan’s confidence as it faces the year 2022,” he said. so. Even if we believe that the company can still divide. salaries in emergencies, ”said S&P.
2. Modern Land
Fitch also canceled the Country Exchange on Friday, demanding a three-month payment of $ 250 million from a manufacturer.
3. Greenland Holding
Ahead of Friday’s collapse, S&P on Thursday defeated Greenland Holding – one of the largest domestic and real estate companies in cities such as New York, London, and Sydney. It also cited its “limited” financial opportunities, which could diminish its ability to deal with the problems of the business segment. Fitch says it is still assessing the company’s ability to raise money gradually.
“Long-term declines in credit card prices could undermine the confidence of lenders, suppliers, and consumers.”
China properties ‘struggling’: Capital Economics
New housing prices have fallen in recent weeks and are 25% below the 2019 level, research firm Capital Economics said in a letter on Friday.
“Evergrande’s language may give home buyers a question of whether investors will be willing to pay homage,” said Chinese chief economist Julian Evans-Pritchard.
Meanwhile, real estate agents are upset because they are “shutting down kids” to buy with problems for their money, an economist said. This marks a return to new housing jobs in the coming months.
“The only thing we can be sure of is that the rich side is suffering,” he wrote.
Looking ahead, he is looking forward to further policy reforms as their managers increase housing demand. It could include lower prices for first-time home buyers, and lower prices to lower home prices, Evans-Pritchard writes.
“We think a leader is always committed to submitting to development management.”