China Evergrande Group Chairman Hui Ka Yan attends a news conference on the property developer's annual results in Hong Kong, China March 28, 2017. REUTERS/Bobby Yip/File Photo - RC2BVQ9AGILGHONG KONG, Dec 6 - China's private homebuilders might struggle to stay private for much longer. Evergrande, the country's most indebted developer, has admitted it might formally default.
With $10 billion in property bonds maturing in January alone, officials are under pressure to keep the sector from collapsing without softening their hard line on debt levels.is unlikely to come up with the money. Chairman Hui Ka Yan has even resorted to tapping his personal wealth, per a Reuters report. But so far only a few smaller peers have officially defaulted in the public market.
Financial regulators issued statements on Friday arguing Evergrande is an isolated case. That evening Premier Li Keqiang flagged an upcoming bank reserve requirement ratio cut, while Evergrande’s provincial government in Guangdong sent a work group to oversee "risk management". That sounds similar to what happened to aviation conglomerate HNA before a restructuring. But while HNA was somewhat unique, Evergrande is just the worst member of a troubled crew with $1.
ywchen1 Formally default? They missed payment almost a week ago AFTER a 30 day grace period and they still have $300 BILLION outstanding debt. And oh yeah, they oversupplied the housing market, so their assets are underwater.