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World China: Evergrande could "not be able to honor its financial obligations"!

18:45  20 october  2021
18:45  20 october  2021 Source:   pressfrom.com

Washington Is Getting China Wrong

  Washington Is Getting China Wrong A crisis at a property company exposes deep, dangerous, and often unrecognized weaknesses in the Chinese economy.All of that is reason enough to care about what’s happening at this otherwise little-known Shenzhen-based real-estate company. But Evergrande and the problems it faces tell an even more important and fundamental story about China and its future. The crisis exposes the deep, dangerous, and often unrecognized weaknesses in the Chinese economy that could derail its advance and, with it, Beijing’s quest to challenge American primacy on the world stage.

Chine : Evergrande pourrait © An Xin / Costfoto / Barcroft Media via Getty Images China: Evergrande could "not be able to honor its financial obligations"! Evergrand returns on the stock market (recovery of quotation of the actions). Evergrand warns, however, that it could "not be able to honor its financial obligations". The property promoter in difficulty "will continue to implement measures to mitigate (its) liquidity problems".

What will become Evergrande? The Chinese real estate giant at the feet of clay, which feeds the concerns of the financial markets, because of an abyssal indebtedness, announces the recovery of the quotation of its title, suspended in early October. One of the largest promoters in China dragged a slate estimated at nearly 260 billion euros, which threatens by domino the rest of the economy. Despite a storm on the financial markets in September, Beijing still did not say whether or not to help the company at the edge of bankruptcy.

Evergrande owes a million payment for Landerwerb

 Evergrande owes a million payment for Landerwerb Beijing (Reuters) - the scanning real estate giant China Evergrande has also been guilty of payments for a landing of land acquisition. For a purchase of land in the northeastern millions of metropolis Changchun in the northeastern millions of metropolis, the city of $ 28 million would be settled, the urban authorities announced on Thursday. Evergrande had acquired the country over the local developer Changchun Jitoo Real Estate Development for 93 million dollars.

and October 4 Evergranda had suspended its quotation on the Hong Kong Stock Exchange, after several loans refunds not honored. The listing will resume Thursday from 09:00 local (01:00 GMT), said the group in a press release sent Wednesday night to the Hong Kong Stock Exchange. Evergrand warns, however, that it could "not be able to honor its financial obligations". But the group "will continue to implement measures to mitigate [its] liquidity problems," insured the real estate promoter.

>> To read also - Evergrande: China risks bursting the bubble of real estate!

Evergrande had recognized in September that it may not perhaps honor all its commitments but defended itself to be at the edge of bankruptcy. Dozens of injured owners and unpaid suppliers showed the Group's headquarters in Shenzhen (South China). Evergrande, which has launched in recent years in diversification all azimuth, has been struggling for several weeks to honor its interest payments and deliveries of apartments.

Troubled developer Evergrande to resume trading, warns of financial obligations

  Troubled developer Evergrande to resume trading, warns of financial obligations Chinese developer Evergrande will resume trading in Hong Kong on Thursday, it said in a filing, but warned there was "no guarantee" it would be able to meet its financial obligations. On Wednesday, Evergrande said it had applied for a trading resumption to take effect the following day, although cautioned that "there is no guarantee that the group will be able to meet its financial obligations".The company suspended trading on October 4 as it struggles in a sea of debt and faces a default, with investors' fearing the fallout from its predicament could impact the wider Chinese economy.

In addition to real estate, the firm has invested in tourism, digital, insurance, health ... but also the electric car. Founded in 2019, Evergrandar Auto had for the ambition to revolutionize the sector and compete with the American Tesla. It has always marketed any vehicles.

>> A Read also - Evergrande: a "limited" exhibition for the euro zone in case of bankruptcy

Evergrande is also known in China for its football club: Guangzhou FC (ex-Guangzhou Evergrande), driven a time by the Italian world champion Fabio Cannavaro. The real estate sector has long been one of the locomotives of the Chinese economy with the construction of millions of housing.

A frenzy stimulated in particular by the need of most Chinese to access the property, almost obliged to social promotion. But facing the swelling of the debt in real estate, the regulators imposed on the sector "three red lines", prudential ratios that aim to reduce the use of the debt of the promoters. The most weakest struggles since maintaining their activities, while sales and prices in real estate slowed in recent months.

Evergrande shares plunge on market return as deal falls through

  Evergrande shares plunge on market return as deal falls through Chinese property giant Evergrande's shares plunged Thursday after resuming trading in Hong Kong, with the failure of a unit sale deal deepening fears the indebted firm will collapse and send shockwaves through the world's second-largest economy. Evergrande had suspended trading on October 4 pending an announcement on a "major transaction" as it struggled with some $300 billion of debt -- with investors worried about the potential fallout from its predicament. On Thursday, its shares dropped 10.5 percent at the open, and were later trading about seven percent down.A deal worth HK$20.04 billion (US$2.58 billion) to sell a 50.

End of September, Evergrande has been unable to honor loan repayments, totaling $ 131 million (€ 113 million). And this month, Evergrande could not honor a third loan of $ 148 million (€ 127 million). However, the group has a grace period of 30 days for each loan. The deadline of the first payment falls on October 23rd. Friday, Beijing, however, tried to reassure. The Chinese central bank felt that the situation of Evergrand was certainly delicate but assured that the risk of contagion to the "manageable" financial system.

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Evergrande EV unit soars after chairman prioritised that business .
Stock rose on the news that the group would make its EV unit its primary business, instead of its real estate one.Evergrande, reeling under more than $300bn in liabilities, averted a costly default last week with a last-minute bond coupon payment, buying it more time to head off a looming debt crunch with its next major payment deadline on Friday.

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