China Evergrande’s Real Estate Wing Posts Loss
China Evergrande Group warned that its real estate wing recorded a loss in the first half of the year for the first time since at least 2009.
The company’s property business incurred a loss equivalent to about $618 million, according to the Wall Street Journal. The parent company is the world’s most indebted developer with around $300 billion in liabilities and around $7.4 billion in bonds maturing next year.
Evergrande started discounting apartments at its developments last spring, hoping to sell more units. Some were discounted as much as 25 percent.
The wider conglomerate managed to still post a profit of $1.4 billion to $1.6 billion in the first half, thanks to gains from the sale of shares in Hong Kong-listed company HengTen Networks Group, and the value of its remaining interest in the company.
Still, Evergrande’s stock is down…