On the heels of Evergrande’s debt crisis, there are increasing signs of stress in China’s real estate market after Fantasia Holdings failed to make a bond payment.
The debt problems afflicting china’s real estate market deepened on tuesday after a developer defaulted on its bonds while the world’s most heavily indebted property group evergrande fantasia holdings, a mid-sized developer that just weeks ago assured investors it exchange filing that it “did not make the
Payment” the default adds to fears that a crisis at evergrande will spread to include more of china’s property developers, which account for a large portion of the asian high-yield bond market. the real estate sector faces pressure from beijing to reduce leverage after decades of debt-driven evergrande
Missed an interest payment on an offshore bond on september 23, triggering a 30-day grace period before a formal default, and has yet to provide any announcement on the matter. fantasia also suspended trading in its shares before markets opened on tuesday in hong kong, joining evergrande, which halted trading of its
Holding company and its property services unit on that it suspended trading in advance of a “possible general offer” for its shares. hopson development, another hong kong-listed developer, speculation from chinese media that it could take on tuesday morning, evergrande had yet to provide any further details on
The potential deal, raising the spectre of an indefinite trading halt “there’s nothing investors can do . . . the worst is yet to come,” said dickie wong, wong said there was no rule preventing companies listed in the city from suspending shares for months on end solely on the basis of a terse
Statement devoid of any real detail. as well as the fantasia default and evergrande’s missed payment, china fortune land development, on an offshore bond in february. triple c by s&p, which noted “heightened execution risk on repayment” in relation rating agency fitch said fantasia had $1.9bn of offshore
Bond payments due by the end of next year and as much as rmb6.4bn ($992m) of onshore the market in late august to buy up $6.5m of the note that matured on monday. but its bonds have tumbled recently on repayment concerns, with a $250m dollar-denominated bond maturing in december an ice index tracking china high-yield
Bonds per cent in late august. investors cent over the past month. shares in huarong, china’s biggest the company delayed its financial reports before finally unveiling a record loss in august. step in to help distressed companies. “basically they don’t have ‘we’re engaging in a potential deal,’ full
Stop,” wong said. “there’s basically no timeframe.” evergrande, whose shares had fallen more than 80 per cent this year before the trading halt, more than $300bn in total liabilities. the hang seng property index tracking major hong kong-listed developers dropped as much as 2.2 per cent on monday but was flat on tuesday.