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    BEIJING (AP) — A Chinese real estate developer warned Friday it might fail to pay off a $400 million bond due next week, adding to financial strains in an industry that is struggling to avoid defaults on billions of dollars of debt. Kaisa Group Holdings Ltd., headquartered in Hong Kong, said it tried to renegotiate the debt due Tuesday but too few bondholders agreed to unspecified terms. “There is no guarantee that the company will be able to meet the repayment obligations,” said a Kaisa statement released through the Hong Kong Stock Exchange. It did not say if there was a grace period before it would be declared in default, which can trigger requirements to repay other debt immediately. Some Chinese developers are struggling to reduce debt after regulators tightened limits last year on their use of borrowed money. That is fueling fears about possible defaults and turmoil in financial markets. Investors worry the biggest, Evergrande Groupe, its global industry’s biggest debtor, might collapse with 2 trillion yuan ($310 billion) of debt. Chinese central bank officials have tried to...
    High-rise apartment buildings at China Evergrande Group's under-construction Riverside Palace development in Taicang, Jiangsu province, China, on Friday, Sept. 24, 2021.Qilai Shen | Bloomberg | Getty Images Asian high-yield bonds have been a hot favorite among institutional investors for the last few years. Also known as junk bonds, they are non-investment grade debt securities that carry bigger default risks — and therefore, higher interest rates to compensate for them. One recent high-profile example was the debt crisis at China's Evergrande. Weighed under more than $300 billion of liabilities, the world's most indebted property developer is teetering on the brink of collapse. Fears of a broader contagion to the industry, and perhaps even the economy, triggered a global sell-off in September. Given the uncertainty of China's junk bond market, CNBC asked five strategists and portfolio managers: Would you advise investors to buy Asia high-yield bonds? To be clear, China real estate bonds form the bulk of Asia's junk bonds. As Evergrande's debt crisis unraveled, other Chinese real estate developers also started showing signs of strain – some missed interest payments, while...
    The boss of debt-ridden Chinese property giant Evergrande has sold $1.1billion worth of assets including jets, art and Hong Kong flats under order from Beijing amid fears the firm's collapse could spark a global financial meltdown. Chinese authorities told the company's chairman Hui Ka Yan, 63, to use some of his personal wealth to help pay bondholders, two separate people with knowledge of the matter told Reuters last month. Evergrande is scrambling to meet its debt obligations, with Hui Ka Yan freeing up funds from luxury assets, according to state-owned China Business News on Tuesday, citing anonymous sources close to the matter. Evergrande's troubles in meeting bond repayments have rattled markets and left many of its investors, creditors and suppliers in financial chaos. Xu has been injecting funds into the company since the beginning of July. Chinese authorities told the chairman of Developer China Evergrande Group Hui Ka Yan (pictured in 2017, file photo), 63, to use some of his personal wealth to help pay bondholders It has been used to 'maintain the basic operations of his huge business empire,'...
    Hong Kong (CNN Business)Evergrande chairman Xu Jiayin has sold more than 7 billion yuan ($1.1 billion) worth of personal assets to prop up his embattled company, Chinese state media reported this week.Xu has sold several houses in Hong Kong, Guangzhou and Shenzhen, as well as some private jets, the state-owned China Business News reported Tuesday, citing anonymous sources close to the matter. The cash, which Xu has been pumping into Evergrande since the beginning of July, has been used to "maintain the basic operations of his huge business empire," the paper reported, adding that the money has been used to pay staff salaries, interest payments on some bonds and cash owed to investors in its wealth product. The money has also gone toward finishing property projects across China."So far Xu Jiayin has been personally raising money to continue the life of Evergrande," the media outlet wrote.Evergrande did not immediately respond to a request for comment from CNN Business about the report.Read MoreShares in the company rose as much as 4.3% in Hong Kong on Wednesday morning, though by the afternoon...
    INVESTORS around the world are holding their breath as the Evergrande Group tries to avoid a default on its debt. We explain how a potential collapse could affect cryptocurrency markets - and whether they will crash. 1We explain how an Evergrande Group debt default would affect crypto marketsCredit: Reuters As always, cryptocurrency investors should know that making money in this way isn't guaranteed and you could lose all the cash you put in. That's why it's important to not invest more than you can afford, or into anything you don't understand. Cryptocurrencies are highly volatile and can make large swings with no notice. Due to the scant regulation for crypto firms, you'll be without protection if and when things go wrong. What is the Evergrande Group? The Evergrande Group is the second largest property developer in China by sales. Most read in MoneyPRETTY PENNY Lincoln Penny is the second most valuable ever with two zinc-plated planchetsCASH COMING November 'stimulus check' payment comes NEXT WEEK ahead of final $300 deadlineBIG BUCKS $2,000 'could be sent EVERY month' as November 'stimulus check'...
    Tokyo (CNN Business)Evergrande is staring down about $8 billion worth of debt obligations due to foreign investors over the next year. The company's billionaire founder and chairman may have to pay at least some of that out of his own pocket.The embattled conglomerate has become the poster child of China's property crisis. Fears that the real estate developer could default and spark a contagion effect roiled global markets in September. In its latest financial stability report, the United States Federal Reserve warned that "stresses in China's real estate sector could strain the Chinese financial system, with possible spillovers to the United States."Evergrande has managed to meet some interest payments and stave off a collapse, at least for now. But a slew of new payment deadlines will soon expire. On Wednesday, a 30-day grace period is up on some $148 million worth of interest payments that the company already missed deadlines on.So far, there's been little clarity on how the company will shore up more cash. It's been trying to sell some of its assets — from a partial stake in...
    Hong Kong (CNN Business)Troubles in China's vast real estate sector could spill over to the global economy — including the United States, according to the Federal Reserve.The US central bank warned Monday that China's ongoing property woes could elevate "financial stresses in China, [which] could further strain global financial markets and negatively affect the United States." In its biannual report on financial stability, the Fed pointed specifically to the crisis at Evergrande, China's most indebted developer. The company has sparked fears of contagion since September, upon warning that it could default on its debts of more than $300 billion. Several other real estate developers are also in trouble.Though "Chinese authorities have introduced measures to cool down property markets," there is a risk that "financial vulnerabilities will continue to rise," the Fed noted.The central bank warned that given the size of China's economy and financial system, and its global ties, "financial stresses in China could strain global financial markets through a deterioration of risk sentiment, pose risks to global economic growth, and affect the United States."Read MoreGhost towns: Evergrande crisis shines...
    Vehicles drive by unfinished residential buildings from the Evergrande Oasis, a housing complex developed by Evergrande Group, in Luoyang, China September 16, 2021.Carlos Garcia Rawlins | Reuters The debt problems facing China's property sector are likely to cause a period of stagnation which affects both the domestic and global economy, according to George Magnus, economist and research associate at the China Centre at Oxford University. Hong Kong-listed shares of Chinese real estate developer Kaisa Group Holdings were halted on Friday after news that it had missed a payment on a wealth management product. This came on the back of the protracted saga involving debt-ridden developer China Evergrande Group. Of the challenges facing the world's second-largest economy in the coming years, Magnus argued that debt — relating to the property sector in particular — could be the most problematic. "I think it is the debt that really is the most imminent, and I think we can see this in the property sector, which is sort of a metaphor for what's going on in the rest of the economy amongst local governments,...
    People look at models of houses at the 2021 Dalian autumn real estate fair at Dalian World Expo Center on October 15, 2021 in Dalian, Liaoning Province of China.Liu Debin | Visual China Group | Getty Images BEIJING — Worries about Chinese real estate developers' high debt levels have rattled investors despite signs that property giant China Evergrande may be making progress on resolving its debt problems. It's an indication of further pain to come in China's property market, analysts told CNBC. Since late summer, global investors have watched for Evergrande's ability to stave off official default — and are concerned about whether the fallout might spread to the rest of China's real estate industry. Other major developers have also reported liquidity problems in the last several days. Chinese property stocks trading in Hong Kong mostly fell last week. Evergrande was among the least affected and lost about 1.3% for the week. On the debt front, the Markit iBoxx index for China real estate high yield bonds fell 11.5% last week, according to IHS Markit.VIDEO10:0310:03Billionaire investor Thomas Tull talks China...
    Hong Kong (CNN Business)Another Chinese real estate company appears to be at risk of default, escalating fears of further problems in the country's embattled property sector.Shares of Kaisa Group, a Shenzhen-based developer, were suspended from trading on Friday in Hong Kong. The company's subsidiaries, which were also halted from trading, cited a "pending" announcement about the group in stock exchange filings.While Kaisa did not disclose more details for the reason behind the suspension, it had said the previous day that it was facing "unprecedented pressure" on its finances.Chinese state-run financial newspaper Securities Times reported Thursday that the company told the outlet about its liquidity issues, and admitted to missing a payment related to its wealth management products.Kaisa did not immediately respond to a request for further comment.Read MoreAccording to the report, Kaisa said that it was experiencing multiple headwinds, such as a challenging real estate market environment and the recent downgrading of its credit ratings by international agencies.Those comments led the company's shares to crash about 15% on Thursday. Its stock has already cratered by more than 70% this year.Evergrande...
    SINGAPORE — Stocks in Asia-Pacific were mixed in Friday trade as shares in Hong Kong led losses among the region's major markets. Hong Kong's Hang Seng index dropped 1.6% in early trade. Mainland Chinese stocks also retreated, with the Shanghai composite down 0.37% while the Shenzhen component shed 0.14%. Shares of Chinese property developers in Hong Kong fell. China Evergrande Group slipped 1.27% while China Vanke dropped 0.58% and Sunac China Holdings plunged 4%. The Hang Seng Properties index traded 0.9% lower. Trading in Hong Kong-listed shares of Chinese property developer Kaisa Group and several of its units was suspended on Friday, according to exchange notices. It came after Kaisa Group said Thursday its finance unit missed a payment on a wealth management product, according to Reuters. Kaisa is the second-largest issuer of U.S. dollar-denominated offshore high-yield bonds among Chinese developers, according to Natixis. Evergrande ranks first. Investors have been monitoring developments in the Chinese real estate sector amid an ongoing fallout that has seen firms such as debt-ridden Evergrande miss more than one interest payment on its offshore bonds.Mixed...
    BEIJING (AP) — China’s economic rebound from the coronavirus pandemic is stalling as President Xi Jinping’s government cracks down on surging corporate debt. For a decade, the ruling Communist Party has talked about shifting to economy based on spending by 1.4 billion consumers instead of on building factories and apartments. But with each slowdown, Beijing fell back on pepping up growth with more construction and borrowing. Finally, Xi’s government is confronting the problem by clamping down on borrowing by a real estate industry that supports millions of jobs. That is sending shockwaves through the economy. Businesses and households are jittery as housing sales and construction slump. That is chilling auto and retail sales. It has possible global repercussions as China buys less steel and other building materials. “Many customers would like to wait and see,” said Liang Qiming, a salesman for online real estate broker 5i5j.com in Nanchang, a southern provincial capital that was turned into a boomtown by a flurry of construction over the past two decades. China became the world’s factory, but the bigger power driving its economic...
    BEIJING (AP) — A troubled Chinese developer whose struggle to avoid a multibillion-dollar debt default has rattled global financial markets made an overdue $45.2 million payment on a bond Friday, one day before it would have been declared in default, a newspaper reported. Evergrande Group made the payment on a $951 million bond that matures in March 2024, The South China Morning Post newspaper reported, citing unidentified sources. Friday was the end of a 30-day grace period after Evergrande missed a payment due Sept. 29. It was the second time the developer, which owes 2 trillion yuan ($310 billion), paid bondholders one day before it would be declared in default. Evergrande’s struggle to comply with tighter official curbs on borrowing has prompted fears a default might trigger a financial crisis. Officials have tried to allay investor fears by saying the debt problems can be controlled and there should be no impact on the financial industry. The ruling Communist Party is pressing companies to reduce debt levels it considers dangerously high. Economists say Beijing can prevent a credit crunch if Evergrande...
    Hong Kong (CNN Business)For the second time this month, China's most indebted developer Evergrande has reportedly managed to avoid default at the last minute. The debt-stricken firm paid interest on a dollar-denominated bond that was due in late September, just as a 30-day grace period expired, according to the New York Times and Bloomberg. Each publication cited unnamed sources.CNN Business could not independently verify that the payment had been made, and Evergrande did not immediately respond to a request fro comment. The interest due was worth $47.5 million for a bond that expires in March 2024, according to data from Eikon Refinitiv.Friday's reports come a week after Evergrande reportedly paid $83.5 million worth of overdue interest on a dollar bond — also shortly before an expiring grace period. Evergrande wants to build electric cars, not homesIt's not clear where Evergrande is getting the money to pay these debts. But some media have suggested that company Chairman Xu Jiayin is being pressured to reach into his own pockets to keep the company afloat.Read MoreEarlier this week, Bloomberg reported that Chinese authorities...
    Hong Kong (CNN Business)Beijing is making one thing clear to the country's embattled property developers: Pay your debts. All of them. Two major economic and finance agencies on Tuesday called on companies in "key industries" to redeem the principal and interest on their overseas bonds, according to a government statement. Regulators from the National Development and Reform Commission — the country's top economic planner — and the State Administration of Foreign Exchange delivered the message to companies in a meeting on Tuesday. They did not say which firms were in attendance. But the timing is notable: Just days ago, property giant Evergrande paid $83.5 million worth of overdue interest on a dollar-denominated bond that was due last month, just as a 30-day grace period was about to expire. (Evergrande didn't comment publicly on the payment, but it was reported in Chinese state media.) Evergrande and these Chinese real estate developers are already in troubleGetting seriousRead MoreThe Evergrande payment suggested that the developer is getting serious about meeting its debt obligations with overseas bondholders.Previously, the company had been silent on...
    (CNN Business)China's real estate crisis isn't showing any sign of letting up.Embattled conglomerate Evergrande rattled global markets in September by warning it could default on its huge debts. Since then, more developers have made similar public confessions, unnerving investors and raising fears of contagion across the vast sector.It's unclear how the crisis will be resolved. The companies could try to restructure their debts and work things out with their lenders. They could also seek bailouts from the Chinese government.Earlier this month, the People's Bank of China said that Evergrande had mismanaged its business, but risks to the financial system were "controllable." And at financial forum in Beijing last week, Chinese Vice Premier Liu He stressed that risks were generally under control, despite what he called "individual problems" in the property market.The final — and worst — option would be a disorderly series of defaults, which would send shock waves across China's economy, and perhaps beyond.Read MoreFive developers have already run into trouble as China's once red-hot real estate industry cools rapidly.EvergrandeThe crisis started last month with Evergrande's warning, which sparked...
    Hong Kong (CNN Business)Evergrande is starting to pay off its overdue debts and restart stalled real estate projects. Now the embattled Chinese developer is reportedly signaling that it wants to move away from housing and focus on cars.Chairman Xu Jiayin, also known as Hui Ka Yan in Cantonese, said Friday that the firm wants to make electric vehicles its main business within a decade, according to Chinese state media.Evergrande did not immediately respond to a request for comment from CNN Business about Xu's remarks.The comments — reportedly spoken during an internal meeting at Evergrande, according to the state-run 21st Century Business Herald — come as the company has demonstrated some attempts to get back on solid footing. Evergrandes electric car company is having trouble paying its suppliersThe company said in a statement Sunday that it has resumed work on more than 10 housing projects in southern Guangdong province, which will be delivered to homebuyers "one after another." It also made a key interest payment late last week that allowed it to stay out of formal default, according to Chinese state...
    Hong Kong (CNN Business)Evergrande has made a crucial payment that allows it to stay out of default, at least for now, according to Chinese state media.State-run financial newspaper Securities Times reported Friday that the embattled property conglomerate had made an $83.5 million interest payment on a dollar-denominated bond that was due last month. A 30-day grace period for that payment is set to expire on Saturday, but Reuters reported, citing an unidentified source, that Evergrande has wired the funds and bondholders should receive it before that deadline. Evergrande did not immediately respond to a request for comment.The news provided some relief to investors and analysts who had once again worried this week that the company, which continues to teeter on the brink of collapse, would slip into its first formal default.Read MoreIt also suggests that the company is taking some effort to appease offshore investors. Previously, Evergrande had worked to clear some tabs with domestic lenders while staying silent on its debts to international investors, a sign that its priority was to pay back Chinese investors first.Evergrande says a $2.6...
    BEIJING (AP) — A troubled Chinese developer whose struggle to avoid a multibillion-dollar debt default has rattled global financial markets wired $83.5 million on Friday to make an overdue payment to foreign bondholders, a government newspaper reported. Evergrande Group’s struggle to reduce its 2 trillion yuan ($310 billion) of debt to comply with tighter official curbs on borrowing has prompted fears a default might trigger a financial crisis. Chinese officials have tried to ally investor fears by saying the debt problems can be controlled and there should be no impact on the financial industry. Evergrande wired money on Friday to a Citigroup account for a bond payment that was due Sept. 23, the Securities Times reported, citing unidentified sources. Evergrande missed payments in late September and early October to investors in U.S. dollar-denominated bonds issued abroad. The company said Wednesday a 30-day grace period to make those payments before it would be declared in default had yet to expire. The ruling Communist Party is pressing companies to reduce debt levels it considers dangerously high. Economists say Beijing can prevent a...
    China Evergrande Group started returning a small portion of the money owed to buyers of its investment products, weeks after people protested against missed payments at its Shenzhen headquarters, pictured here on Sept. 30, 2021.Gilles Sabrie | Bloomberg | Getty Images Evergrande has remitted the funds for a key interest payment that was due Sept. 23 — ahead of a 30-day grace period that ends Saturday, according to Chinese state media Securities Times. The $83.5 interest payment on Evergrande's March 2022 offshore bond had been closely watched by investors since the heavily indebted property developer warned twice in September that it may default. The Securities Times report said Evergrande has remitted the $83.5 million through Citibank. Citibank declined to comment on this report. Evergrande has missed four other coupon payments in September and October. The property giant, which is buckling under the weight of more than $300 billion in debt, has been struggling to raise funds. The report said Evergrande plans to make the interest payment in time for the Oct. 23 deadline. — This is a developing story. Please check back for updates.TVWATCH LIVEWATCH...
    (CNN) — Se cayó un acuerdo de venta de emergencia que habría aliviado la crisis de efectivo que afecta al gigante inmobiliario chino Evergrande, según reportó la compañía este miércoles, acercándola aún más a un posible colapso. Evergrande anunció el miércoles que se había terminado un acuerdo para vender una participación en su unidad de gestión al desarrollador inmobiliario rival Hopson, por unos 20 mil millones de dólares de Hong Kong (US$ 2,6 mil millones). La participación otorgaba el control de la unidad a Hopson, también radicada en China. ¿Qué es Evergrande?: 5 cosas que debes saber sobre los problemas del conglomerado chino que está al borde del abismo Las empresas intercambiaron culpas por el colapso del acuerdo, con Evergrande alegando en una informe bursátil que “el comprador no había cumplido el requisito previo para hacer una oferta general de acciones en Evergrande Property Services”. Hopson, por su parte, dijo en un comunicado que estaba dispuesta a completar el acuerdo, pero que “otras partes” habían intentado cambiar los términos del mismo. Esta foto aérea tomada el 17 de septiembre de...
    Shares are mixed in Asia after major Chinese property developer Evergrande said a plan to sell its property management arm to a smaller rival had fallen through. Shares slipped in Hong Kong, Seoul and Tokyo, while they rose in Australia and Shanghai. China Evergrande Group’s shares tumbled 12.5% while shares in Evergrande Property Services slipped 8%. In a notice to the Hong Kong exchange Evergrande said it was having difficulties selling off assets to resolve its cash crunch. Hopson Development Holdings’ shares rose 12.4% after it said was unable to complete the purchase. Trading of shares in all three companies was suspended pending a resolution of the transaction. Hong Kong’s Hang Seng index lost 0.6% lower to 25,990.32 while the Shanghai Composite index gained 0.2% to 3,594.78. Some “verbal assurances by government officials and loosening of home loans for some of its major banks suggest that the authorities are monitoring the property market risks, hoping to reassure markets of the knock-on impact on the economy,” said Yeap Jun Rong, a market strategist at IG in...
    Hong Kong (CNN Business)Evergrande has called off plans for a multibillion-dollar deal for its property management unit, worsening its cash crunch as the Chinese real estate giant teeters on the brink of collapse.The company announced late Wednesday that it had terminated an agreement to sell a controlling stake of Evergrande Property Services to rival Chinese developer, Hopson, for about 20 billion Hong Kong dollars (roughly $2.6 billion).The deal, which was announced earlier this month, was scuppered after Evergrande "had reason to believe ... that the purchaser had not met the prerequisite to make a general offer for shares in Evergrande Property Services," the conglomerate said in a stock exchange filing.Hopson, in its own statement, has said that it "does not accept that there is any substance whatsoever" to Evergrande's cancellation of the sale."Until now," Hopson had been "prepared to complete the sale ... in accordance with the agreement," it said Wednesday. Read MoreBut Hopson added that "other parties" had wanted to change the agreed terms of the deal, including terms of payment, which it found "unacceptable."Ghost towns: Evergrande crisis shines...
    BEIJING (AP) — A major Chinese real estate developer whose struggle to avoid defaulting on billions of dollars of debt rattled financial markets says it has called off the sale of a $2.6 billion stake in a subsidiary and has made no progress in selling other assets. China Evergrande Group’s planned sale of 50.1% of its property management unit to a rival, Hopson Development Holdings, was canceled because the buyer “had not met the prerequisite to make a general offer for shares,” Evergrande said late Wednesday in a statement through the Hong Kong stock exchange. It gave no other details. Evergrande’s struggle to reduce its 2 trillion yuan ($310 billion) of debt to comply with curbs on borrowing by China’s real estate industry has prompted fears a default might trigger a financial crisis. The Chinese central bank has tried to allay those fears and said Friday the “risk of spillover” to the financial industry is controllable. The ruling Communist Party is pressing companies to reduce debt levels it considers dangerously high. In a separate announcement, Evergrande said late Wednesday except...
    China Evergrande Group started returning a small portion of the money owed to buyers of its investment products, weeks after people protested against missed payments at its Shenzhen headquarters, pictured here on Sept. 30, 2021.Gilles Sabrie | Bloomberg | Getty Images BEIJING — China Evergrande shares briefly dropped more than 10% in opening trade on Thursday, after a deal to sell some of its assets to Hopson Development Holdings fell through. Hopson shares traded more than 5% higher, while Evergrande Property Services briefly fell 9% in morning trade. Heavily indebted Evergrande was in talks earlier this month to sell part of its services unit to Hopson, its smaller rival. However, Hopson announced late Wednesday that talks fell through to purchase a 50.1% stake in Evergrande Property Services. Evergrande confirmed the termination of the deal in a separate filing. The deal would have been worth 20.04 billion Hong Kong dollars ($2.58 billion), according to filings.Loading chart... Evergrande is China's second-largest developer by sales and the industry's largest issuer of offshore bonds, with a total of about $300 billion in liabilities. Worries...
    VIDEO2:4902:49China's property sector needs to be trimmed for it to stabilize, says professorStreet Signs Asia China's real estate sector has to be "substantially smaller" to keep the overall economy healthy and stable, said a top expert on the Chinese housing market. "We have too big of a risk in the sector. We built too much housing, so the stabilization first has to come [from] trimming the sector," Li Gan, an economics professor at Texas A&M University, told CNBC's "Street Signs Asia" on Wednesday. Gan estimated that about 20% of China's housing stock is vacant as buyers rack up second and third properties as investments. Even then, developers continue to build millions of new units each year, he said. Chinese property developers have grown rapidly following years of excessive borrowing. Troubles in the sector came to the forefront in the last few months as Evergrande and other developers missed bond repayments and face the threat of defaulting.Using real estate sector to pump up GDP growth is not ... a sustainable path for China.Li GanEconomics Professor, Texas A&M UniversityAuthorities in China have...
    High-rise apartment buildings at China Evergrande Group's under-construction Riverside Palace development in Taicang, Jiangsu province, China, on Friday, Sept. 24, 2021.Qilai Shen | Bloomberg | Getty Images BEIJING — Chinese developer Evergrande made little progress toward complying with Beijing's crackdown on real estate debt — until it was too late for investors who poured money into its offshore bonds, now worth at least $19 billion. Worries about the giant developer's ability to repay its debt and a total of $300 billion in liabilities have put global investors on edge. Beyond the company itself, there are worries about a potential spillover into the rest of China's real estate industry or economy. A closer look at Evergrande revealed a company with many of the same problems as others in the Chinese property sector, but didn't act as quickly to respond to government rules aimed at resolving those issues. Evergrande has failed to meet several payment deadlines since September, and the latest was on Oct. 11 for interest owed on one of its U.S. dollar-denominated bonds. That brought its total missed payment to...
    Aerial photography of "river view house" on the side of the Yangtze River. Yichang, Hubei Province, Oct. 16, 2020.Costfot | Barcroft Media | Getty Images The fallout in China's property sector is showing no signs of abating, as more developers face the threat of default — even as uncertainty over the fate of heavily indebted Evergrande looms. All eyes will be on Chinese real estate developer Sinic Holdings, which warned last week that it's not likely to repay offshore bonds worth $250 million due on Monday. There was still no word from the developer as of noon. CNBC has reached out to the company. On Friday, another developer, China Properties Group, said it had defaulted on $226 million worth of notes, as it had failed to secure funds by the Oct. 15 maturity date. They were not the first — Fantasia Holdings had failed to make a bond payment worth $206 million in early October. Last week, ratings agencies issued a fresh round of downgrades for Chinese real estate companies. This week, Evergrande will officially be in default if it...
    BEIJING (AP) — China’s central bank said Friday that financial risks from China Evergrande Group’s debt problems are “controllable” and unlikely to spill over, amid growing investor concerns that the crisis could ripple through other developers. Evergrande is the world’s most indebted developer, with over $300 billion in liabilities. The company has missed a third round of interest payments on its offshore bonds this week, spooking investors globally and sparking concern that other companies in the sector may also default on payments. “Of the total liabilities of Evergrande Group, financial liabilities are less than one-third. Creditors are also relatively dispersed, and individual financial institutions have little risk exposure,” People’s Bank of China official Zou Lan said at a news briefing Friday. “Overall, the risk of the spillover to the financial industry is controllable,” he added. Zou said Evergrande was “poorly managed” in recent years and “failed to operate cautiously” according to changing market conditions. Instead, the company had blindly diversified and expanded, which affected its operations and finances. “The real estate industry is generally healthy,” Zou said, pointing out that...
    An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018.Bobby Yip | Reuters BEIJING — The People's Bank of China said Friday that indebted developer China Evergrande is its own case, and that most real estate businesses in the country are stable. Property giant Evergrande has $300 billion in liabilities and missed yet another payment to investors in U.S. dollar-denominated debt on Oct. 11. The developer ranks second in China by sales, prompting some concerns of another "Lehman Moment." This is a breaking news story. Please check back for updates.TVWATCH LIVEWATCH IN THE APPUP NEXT | ETListen
    (CNN Business)China's real estate crisis isn't showing any sign of letting up.Embattled conglomerate Evergrande rattled global markets in September by warning it could default on its huge debts. Since then, more developers have made similar public confessions, unnerving investors and raising fears of contagion across the vast sector. It's unclear how the crisis will be resolved. The companies could try to restructure their debts and work things out with their lenders. They could also seek bailouts from the Chinese government, but so far Beijing has said little on the issue besides promising to protect homebuyers.The final — and worst — option would be a disorderly series of defaults, which would send shock waves across China's economy, and perhaps beyond.Four developers have already run into trouble as China's once red-hot real estate industry cools rapidly. Read MoreEvergrandeThe crisis started last month with Evergrande's warning, which sparked fears about which banks and investors across the world might be exposed to its debt mountain. Since then, very little has been resolved.With total liabilities of some $300 billion, including $20 billion in international bonds,...
    Hong Kong (CNN Business)Evergrande stayed silent Tuesday about its fate after reportedly failing to make interest payments on another international bond, the third such deadline it appears to have missed in recent weeks. The sprawling Chinese real estate conglomerate was due to make payments of about $148 million on US dollar-denominated bonds on Monday. It did not immediately respond to a request for comment Tuesday. Evergrande is China's most indebted developer, with $300 billion worth of liabilities. It has already likely missed payments on two other US dollar-denominated bonds, fueling speculation over whether the company could collapse. The first of those came due September 23, from which Evergrande had a 30-day grace period — a deadline that is drawing closer.Without a bailout or restructuring, it is heading rapidly for default — an outcome that could send shockwaves through Chinese markets and the wider economy.The company's woes are emblematic of a bigger real estate crunch in China. Read MoreEvergrande's latest deadline coincided with news from another developer, Sinic Holdings, on Monday that it would "likely" default on some of its bond...
    In this article 708-HKPeople walk by an unopened shop for Evergrande's electric cars during the last day of the National Day and Golden Week holidays on October 7, 2021 in Wuhan, Hubei province, China. Evergrande, China's largest property developer, is facing a liquidity crisis with total debts of around $300 billion. The problems faced by the company could impact China’s economy, and the global economy at large.Getty ImagesGUANGZHOU, China — The electric vehicle unit of embattled Chinese property developer Evergrande said its first cars will roll off the production line next year. The debt-laden company said it met with suppliers and the local government in Tianjin, where its production base is, and pledged to push forward with mass production of its Hengchi-branded cars. Shares of China Evergrande New Energy Vehicle Group were up over 10% in morning trade but pared some of those gains. They were around 6% higher at the lunch break in Hong Kong. Evergrande has not delivered a single vehicle to customers yet — but it has lofty ambitions. It previously pledged annual production and sales...
    Hong Kong (CNN Business)Chinese Estates Holdings plans to go private after its stock was slammed by fallout from the crisis at Evergrande. The Hong Kong developer had seen its shares plunge as much as 44% this year to their lowest level in nearly two decades as Evergrande teetered on the edge of collapse. Chinese Estates is the second largest shareholder in Evergrande after founder and chairman Xu Jiayin."Directors are cautious and concerned about the recent development of China Evergrande Group including certain disclosures made by China Evergrande Group on its liquidity," Chinese Estates said in a filing to the stock exchange late Wednesday.It offered to pay minority shareholders 1.91 billion Hong Kong dollars ($245 million) for their 25% stake and take the company private. The offer represented a premium of about 83% over the stock's closing price on September 28, the last full day before it was suspended from trade. Chinese Estates Holdings, controlled by Hong Kong billionaire Joseph Lau and his wife Chan Hoi-wan, has been a long-time ally of Evergrande. It has often offered financial support to the...
    The impending collapse of China’s gigantic Evergrande Group real estate company caused a tumble at the stock market Tuesday for other Chinese property developers. Even investors in completely unrelated markets are growing nervous about what the implosion of such a huge company could do to banks in China and around the world — and what it could mean for Beijing’s geopolitical agenda. Evergrande is a property development conglomerate based in the city of Shenzhen, founded in 1996 by Hui Ka Yan, who went on to become the richest man in China for a time. The company accumulated thousands of properties across China, amassing billions of dollars in assets — and, more importantly, over $300 billion in debt it cannot repay, about $20 billion of it owed to foreign creditors. In short, Evergrande expanded too much, diversified too much, and borrowed far too much money from lenders who were happy to give the huge and ambitious firm an unlimited line of credit. Most of its big acquisitions were in residential real estate, and when the bottom suddenly fell out of China’s...
    Hong Kong (CNN Business)A Chinese developer of luxury apartments missed $315 million in payments to lenders on Monday, sparking fears that financial strains in the country's outsized property sector are spreading beyond the troubled Evergrande conglomerate.Fantasia Holdings, a Shenzhen-based developer, missed repaying $206 million worth of bonds that matured Monday, the company said in a stock exchange filing. It is now assessing "the potential impact on the financial condition and cash position of the group," it added.Separately, the property management unit of Country Garden, China's second largest developer by sales after Evergrande, said in a filing that Fantasia had failed to repay a company loan of about 700 million yuan ($109 million). Fantasia had informed the company that it would probably "default on [its] external debts," Country Garden Services added.Fantasia shares were suspended on Tuesday but shares of Country Garden Services tumbled 3.2% in Hong Kong. Country Garden Holdings lost 2.8%.The news revived fears that debt woes are deepening in China's overextended property sector, which accounted for 29% of outstanding loans issued by Chinese banks in yuan in the second...
    Hong Kong (CNN Business)Asian stocks mostly tumbled Tuesday following the US market sell-off, as tech and property dragged. Japan's benchmark Nikkei (N225) slid as much as 3.5%, taking the drop from recent record highs to 10%, which put the market briefly in a correction. It later pared losses to 2.5%. Fast Retailing (FRCOF) sank 6.6%. Z Holdings, which owns Yahoo Japan (YAHOF), lost 5.8%.South Korea's Kospi (KOSPI) fell 1.7%, and is set to record its biggest drop in nearly two months.Hong Kong's Hang Seng Index (HSI) lost as much as 1.4% earlier in the morning, with tech and property shares being the worst performers. But it reversed losses and moved up 0.3%, as energy shares surged, offsetting losses by other sectors.The Hang Seng Tech Index underperformed, down 0.2%. Alibaba (BABA) dropped 1.6% to its lowest level since it listed in Hong Kong two years ago.Read MoreProperty shares also fell heavily in Hong Kong amid Evergrande's trading halt, as contagion fears grow that Evergrande's debt woes could spread to China's entire property sector.5 things to know about the Evergrande crisis: A...
    A pedestrian crosses a road in front of residential buildings in Beijing, China.Qilai Shen | Bloomberg | Getty Images On the heels of Evergrande's debt crisis, there are increasing signs of stress in China's property market after one developer failed to make a bond payment on Tuesday. Ratings agencies have downgraded Chinese developers Fantasia Holdings and Sinic Holdings over risks from their strained cash flow situations. Fantasia did not repay a bond that matured on Monday, it said in a filing to the Hong Kong exchange. The firm has halted trading of its shares since Sept. 9 until further notice, it said. Those shares have plummeted nearly 60% year-to-date.Evergrande contagion fearsThe fallout from Fantasia, however, would be far smaller compared to Evergrande. Evergrande is the world's most indebted property developer with liabilities of $300 billion, while Fantasia has total liabilities of 82.9 billion yuan ($12.8 billion), according to its first-half financial statement.We believe the existence of these bonds means that the company's liquidity situation could be tighter than we previously expected.Fitch RFitch Ratings on Monday said it downgraded Fantasia to...
    London (CNN Business)Car sales at major automakers are plunging due to a shortage of computer chips that's forced factory shutdowns and crimped supply.But that's not fazing Wall Street, which remains laser-focused on investment in electric vehicles that could power future growth.What's happening: General Motors (GM), Chrysler-owner Stellantis and Honda (HMC) all recently said that sales fell sharply over the past three months due to supply chain disruption. The latest update from Ford (F) is due Monday."The enduring nature of the microchip shortage and port congestion issues continue to constrain the entire industry," Honda executive Dave Gardner said in a statement. Breaking it down: Carmakers say demand for vehicles remains strong, even as prices have hit record highs. The average new vehicle in the United States sold for $43,355 in August, according to Kelley Blue Book. That's up 10% from one year ago.Read More"Underlying demand conditions remain strong, thanks to ample job openings, growing pent-up vehicle demand and excess savings accumulated by many households during the pandemic," GM chief economist Elaine Buckberg said.Yet automakers have had to idle plants for months...
    Hong Kong (CNN Business)Shares in Evergrande were suspended Monday amid reports that a rival Chinese real estate developer was preparing to buy its property management business — a move that could inject much needed cash into the ailing conglomerate.Cailian News, a Chinese state-run financial news outlet, reported Monday that Hopson Development was planning to assume control of Evergrande's property management arm by buying a stake of about 51% in a deal that could be worth more than 40 billion Hong Kong dollars ($5.1 billion). Chinese state-run tabloid Global Times also covered the expected deal, referring to various "media reports" the same day.Shares of Evergrande's property management business and Hopson were also suspended from trade in Hong Kong on Monday. In a stock exchange filing, the Evergrande subsidiary cited "a possible general offer for the shares of the company," while Hopson said in its own filing that an announcement was "pending," and would be related to a major acquisition. Foreign investors are losing out in Evergrandes battle to surviveIn a separate statement to CNN Business, Hopson said that it would "not...
    In this article 3333-HK 6666-HK 754-HK A man drives a cart past apartment buildings at China Evergrande Group's Life in Venice real estate and tourism development in Qidong, Jiangsu province, China, on Tuesday, Sept. 21, 2021.Qilai Shen | Bloomberg | Getty ImagesIndebted developer Evergrande is set to sell part of its stake in its property services unit, the second asset sale in as many weeks as the liquidity-squeezed property giant scrambles to raise cash. Trading in shares of Evergrande and Evergrande Property Services was halted Monday morning. In a filing with the Hong Kong exchange, Evergrande said it requested the trading halt ahead of an announcement about a "major transaction." Evergrande Property Services said that the announcement constitutes "a possible general offer for the shares of the Company." Chinese developer Hopson also suspended trading of its shares, citing an impending announcement of a "major transaction" to acquire the shares of a Hong Kong-listed company, without specifying. Chinese state media Global Times reported, citing unnamed media reports, that Evergrande will sell about 51% of its property services arm to Hopson...
    Asian markets were mixed on Monday, with Hong Kong’s benchmark down more than 2% after troubled property developer China Evergrande’s shares were suspended from trading. China Evergrande did not say why it halted trading of its shares, but a Chinese financial news service, Cailian, said another major developer was planning to buy Evergrande’s property management unit. Evergrande is struggling to make payments on more than $300 billion of debt as it endures a cash crunch brought on by a tightening of Chinese government restrictions on debt-leveraged financing. The Hang Seng sank 2.5% to 23,96.25 while Tokyo’s Nikkei 225 dropped 1.1% to 28,444.89. Shares fell 1% in Taiwan. Australia’s S&P/ASX 200 climbed 1.3% to 7,246.10. On Friday, its government outlined plans to lift a pandemic ban on its vaccinated citizens traveling overseas from November, though it has yet to reopen to international travelers. Markets were closed for holidays in Shanghai and South Korea. Crude prices fell slightly ahead of a meeting of major oil producers. There was no sign that a spill from a pipeline...
    SINGAPORE — Asian markets were mixed on Monday morning, with the Hang Seng index in Hong Kong tumbling more than 2%. Trading in shares of China Evergrande was halted, as investor concern surrounding the indebted property developer returned. Trading in the shares of Evergrande Property Services was also halted. There were no reasons given for the trading halts. At the same time, the shares of another Chinese property developer Hopson were also suspended. Hopson said in a filing that it has halted its shares pending a "major transaction" under which it has agreed to acquire the shares of another company. Investors will continue to monitor the situation surrounding the debt worries of Evergrande, which has missed two bond interest payments in the past weeks. Meanwhile, shares in Asia-Pacific were mixed after Merck announced its new Covid oral antiviral treatment that cuts the risk of hospitalization or death. In Japan, the Nikkei 225 shed 1.27% while the Topix index dipped 0.8%. Australian stocks jumped, with the S&P/ASX 200 up 0.9%. MSCI's broadest index of Asia-Pacific shares outside Japan traded 0.33% lower.Stock...
    HONG KONG (AP) — Shares in troubled real estate developer China Evergrande Group and its property management unit Evergrande Property Services have been suspended from trading in Hong Kong. The company’s filings did not specify why the shares were stopped from trading. Cailian, a Chinese online news service affiliated with the state-run newspaper Securities Times, said another developer, Hopson Development Holdings, was planning to acquire a majority share in Evergrande Property Services Group. Trading in Hopson’s shares also was suspended Monday in Hong Kong, “pending the release of announcement(s) in relation to a major transaction of the company under which the company agreed to acquire the shares of a company . . . listed on the stock exchange,” it said in a filing. Evergrande has been struggling to avoid defaulting on billions of dollars of debt. The company owes billions to banks, customers and contractors and is facing a cash crunch. Its situation worsened after the government tightened limits on corporate debt levels. The company ran up billions of dollars in debt building apartment complexes,...
    HONG KONG (AP) — Filing says shares of Chinese developer Evergrande have been suspended from trading on Hong Kong stock exchange. Copyright © 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.
    The tradition traces back to the 1700s. These women are fighting to keep it alive through online retail. German parties meet as coalition haggling begins (Reuters) - Hong Kong's exposure to debt-laden developer China Evergrande Group is "very minimal" at 0.05%, or HK$14 billion ($1.79 billion), of banking assets, South China Morning Post reported on Sunday, citing the city's finance minister. © Reuters/TYRONE SIU FILE PHOTO: The logo of China Evergrande is seen at outside China Evergrande Centre building in Hong Kong "It is very minimal and won't cause us any systemic risks," Financial Secretary Paul Chan told the newspaper, adding he had arrived at the conclusion after a recent audit of the local banking sector's exposure to the company. Load Error Chan also said Hong Kong's stock market was inevitably subject to some volatility amid a recent mainland crackdown on some industries, but that he believed any setback would be temporary. With liabilities of $305 billion, Evergrande has sparked concerns its cash crunch could spread through China's financial system and reverberate globally, a worry that has...
    Hong Kong (CNN Business)The endgame for Evergrande is still up in the air. But the troubled Chinese conglomerate is starting to get its priorities in order — and foreign investors look to be bottom of the list.In recent days, the property giant has worked to clear some tabs with domestic lenders as it tries to sort through its $300 billion mountain of debt. But the firm has stayed silent on two interest payments to offshore investors that came due in the past two weeks.Those interest payments were due on dollar-denominated bonds: one for $83.5 million, and the other $47.5 million. Deadlines came and went last Thursday and this Wednesday, respectively, with no official update.That suggests that the company's priority is to pay back Chinese investors first, if it can pay them back at all. It's also under huge pressure from Beijing to protect people who bought its apartments and have not yet taken possession of them. China's real estate sector and related industries are estimated to account for about 30% of GDP, and officials want to avoid a wider crisis.On...
    London (CNN Business)Technology stocks dropped sharply on Tuesday in a painful trading session that led the Nasdaq Composite to its worst day since March.The biggest US companies logged major losses. Apple (AAPL) shed 2.4%, while Microsoft (MSFT) fell 3.6%, Amazon (AMZN) lost 2.6% and Facebook (FB) dipped 3.7%. Chipmakers Intel (INTC) and Nvidia (NVDA) also took a beating.Why? Inflation fears are back as bond yields rise and interest rate hikes loom. Price hikes caused by supply chain bottlenecks and a resurgence in consumer demand have stalked markets all year, even as stocks reached record highs. But on Tuesday, Wall Street honed in on two recent developments.Inflation expectations: Last week, the Federal Reserve raised its inflation forecasts for 2021, 2022 and 2023. It now expects the core personal consumption expenditure index, the central bank's preferred measure of tracking prices, to rise by 3.7% this year, compared to the 3% it predicted in June, as well as 2.3% next year, up from 2.1%. Core inflation could remain at 2.2% in 2023, still above the central bank's 2% target.Read MoreThe Bank of England...
    How some school districts are trying to keep kids out of quarantine A London police officer handcuffed a woman in a fake arrest before raping and killing her, prosecutors say Embattled property developer Evergrande on Wednesday said it will sell a $1.5 billion stake in a regional Chinese bank to raise much-needed capital, as it struggles to make interest payments while being choked by debts and ratings downgrades. © Hector RETAMAL There are fears that the collapse of Evergrande could send shockwaves through the Chinese economy and beyond The stake sale to a state-owned group is Evergrande's first major asset disposal as it attempts to claw its way back from the brink of collapse. Load Error Experts fear a chaotic implosion of the company, which is saddled with more than $300 billion in debts, could reverberate through China's banking and property sectors, and possibly into the global economy. The Shenzhen-based conglomerate agreed to sell 1.7 billion non-public shares in northeastern China's Shengjing Bank to Shenyang Shengjing Finance Investment Group, Evergrande said in a Hong Kong exchange filing.  "The...