Chinese property stocks fall after Evergrande reveals restructuring plan

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Heavily indebted developer’s proposal could offer template for other distressed companies

email rounding up the latestChinese property stocks fell on Thursday after the long-delayed release of developer Evergrande’s restructuring plan, highlighting doubts about the company’s prospects of recovery.was at the centre of a crisis in the Chinese property sector after it defaulted in 2021 with liabilities of $300bn, including offshore debt of $22.7bn.

Brock Silvers, chief investment officer at private equity firm Kaiyuan Capital, said “creditors should need substantial inducement” to accept the long-maturity notes, adding the equity tied to its EV arm “may not provide much actual security” as well. The detailed restructuring proposal, which is expected to take effect in October, is a significant moment for a sector that was plunged into crisis in 2021 after the Chinese government embarked on a campaign to reduce leverage.poses a severe challenge to Chinese policymakers who are trying to revitalise an economy weakened by years of Covid-19 restrictions.

 

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Booooom I will take over now let's moooooooon to the mooooon

Evergrande should be given bankruptcy reorganization as soon as possible, which is conducive to the liquidation and recovery of the whole real estate industry.

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