China Evergrande, once one of China’s largest real estate developers, has been mired in the Chinese government’s debt crisis in recent years.
wall street journal We previously reported that Evergrande’s overseas creditors were unable to reach a restructuring agreement in the 11th hour this weekend, potentially forcing an imminent liquidation for the property developer.
Evergrande, the world’s most indebted real estate developer, defaulted in 2021 and announced an offshore debt restructuring program March last year.
Chinese policymakers are scrambling to stem a debt crisis in its beleaguered real estate sector.
Last week, the People’s Bank of China and the Ministry of Finance announced measures to increase liquidity available to real estate developers.
The measures will remain in effect until the end of this year and will help ease a lingering cash crunch for Chinese developers after the Chinese government cracked down on the sector to deal with the real estate industry’s ballooning debt levels. .
NANJING, CHINA – AUGUST 18, 2023 – Aerial photo shows Evergrande residential area in Nanjing, eastern China’s Jiangsu province, on August 18, 2023. (Photo credit: Costfoto/NurPhoto via Getty Images)
Evergrande’s crisis has sparked epidemic fears that problems in China’s real estate sector could spill over to other parts of the world’s second-largest economy.
Country Garden, another of China’s largest developers, is also struggling to service its own debt. However, the developer reportedly said last month that it may avoid defaulting on its renminbi-denominated bonds.
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