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China: Other real estate companies are wavering

2021-10-11T12:27:27.591Z

The crisis in China's real estate sector is widening. After Evergrande, two other companies are struggling to service their debts.



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Condominiums in Qingdao, China

Photo: Wu Hong / dpa

After the near bankruptcy of the Evergrande group, the real estate developer Fantasia has now also restricted trading in its bonds in the Shanghai financial center.

Two Fantasia bonds were suspended from trading on Friday after parent company Fantasia Holdings missed the deadline for a bond repayment of $ 206 million on October 4th.

Most of Fantasia’s bond titles have already lost around 80 percent of their value.

The company's credit rating has been downgraded.

Smaller real estate developer Modern Land also said it would ask investors to postpone the due date for a dollar bond that expires on October 25 by three months.

In this way, insolvency should be avoided.

Evergrande has more than $ 300 billion in debt, of which nearly $ 150 million will soon be due in foreign debt.

Donors are already preparing for payment defaults.

For many non-governmental Chinese real estate developers, it is now a matter of surviving the next three months, says real estate analyst Cai Hongfei of brokerage firm Central Wealth Securities.

"Asking you about your repayment schedule in six to twelve months is a question you simply cannot answer."

ssu / Reuters

Source: spiegel

All business articles on 2021-10-11

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