These 4 Chinese real estate developers are already in trouble
[ad_1]
The final option – and the worst – would be a messy series of flaws, which would send shockwaves through the Chinese economy, and possibly beyond.
Four developers have already run into trouble as China’s once-scorching real estate sector cools rapidly.
Evergrande
Crisis began last month with the warning from Evergrande, which raised fears that banks and investors around the world were exposed to its mountain of debt. Very little has been resolved since.
Failure to pay usually results in a grace period, 30 days in this case, but time is running out fast – the default clock started ticking on September 23.
Fancy
Fantasia said it would probably be “by default on [its] external debts, â€according to Country Garden.
Credit rating agencies S&P and Moody’s assigned Fantasia “default” credit ratings and said failure to pay principal would likely default the company on its remaining obligations as well.
Shares of the company, which has a market value of HK $ 3.2 billion ($ 420 million), are down nearly 60% this year.
Modern earth
As Modern Land calls for a respite to sort out its finances, President Zhang Lei and President Zhang Peng are digging into their own pockets to support the business. They said they would loan the company 800 million yuan ($ 124 million).
Modern Land’s stock has fallen nearly 50% this year, dropping its market value to HK $ 1.2 billion ($ 160 million).
Sinic Holdings
Homebuilder Sinic Holdings is the latest to join the struggling developer ranks, saying Monday he would likely default on some of his bond payments worth $ 250 million.
The principal and interest on these bonds are due on October 18.
Sinic stock has suffered the most of the four developers this year, down nearly 90%. The market value of the company now stands at 1.8 billion Hong Kong dollars ($ 230 million).
– Jill Disis, Laura He and Michelle Toh contributed to this report.
[ad_2]
