HONG KONG, Sept 20 — Fears of a contagion from the potential collapse of battered Chinese real estate giant Evergrande sent property shares plunging in Hong Kong today, with the firm expected to default on upcoming interest payments this week.
Adding to the anger, it emerged at the weekend that six top executives would face “severe punishment” for redeeming financial products before telling retail investors that the firm could not pay them on time. Other property firms were also in the firing line, with Henderson Land losing and New World Development each around 12 per cent lower. Sun Hung Kai Properties shed nine per cent.
Attention is now on the company’s repayments, with interest due on bank loans Monday and two bonds on Thursday.However, one creditor quoted by Chinese financial outlet Caixin Global today estimated that there is a “99.99 per cent” chance Evergrande will not be able to pay interest due in the third quarter.
While predominantly a real estate firm, the group also embarked on an all-out diversification, buying football club Guangzhou FC, opening amusement parks, setting up Evergrande Spring mineral water and also investing in tourism, digital operations, insurance, and health. The company last week admitted it is under “tremendous pressure” and may not be able to meet its liabilities. Its credit rating has been cut several times by ratings agencies.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: malaymail - 🏆 1. / 86 Read more »