September 28, 2021
Real Estate

Analysis: China’s house of cards: Evergrande threatens wider real estate market

The China Evergrande Centre is seen in Hong Kong, China. August 25, 2021. REUTERS/Tyrone Siu/File Photo

SINGAPORE/SHANGHAI, Sept 14 (Reuters) – China Evergrande is teetering between a messy meltdown with far-reaching impacts, a managed collapse or the less likely prospect of a bailout by Beijing for what was once the country’s top-selling property developer.

Founded in Guangzhou in 1996, Evergrande has epitomised China’s freewheeling era of borrowing and building, but with liabilities of nearly two trillion yuan ($305 billion) its possible collapse looms as one of China’s largest for years.

Debt and land-buying curbs and hundreds of new rules have been imposed on Chinese developers over recent years as part of a push to cut financial risks and promote affordable housing.

Evergrande (3333.HK), which accelerated efforts to cut its debts in 2020 after regulators introduced caps, does not…

Read full article here: www.reuters.com