![]() ![]() IG market analyst Kyle Rodda also said in a note today that “China’s financial markets and economy remains in a precarious position”. Modern Land, a Beijing-based property developer, asked investors on Monday to allow it to delay repayment of a 250 million bond for three months to avoid any potential payment default. They added that Evergrande’s fiasco “could dampen the sentiment for homebuyers, developers and banks, causing more developers to run into a liquidity crunch”. In a research note earlier this week, China economists for Macquarie Group Larry Hu and Xinyu Ji described the current Chinese property sector as “worrisome”. Country Garden, China’s last real estate giant to avoid default, has spooked investors after missing key debt payments, rekindling memories of China Evergrande. In the early days of the Evergrande crisis, there was widespread speculation it could cause a “contagion” and create problems for the broader global economy, with Tim Anderson, managing director at TJM Investments, saying the situation “raises the question if there are similar companies and similar situations investors haven’t looked at”, according to the New York Post.ĭespite the drama playing out for weeks now, there is still no sign of the disaster being brought under control – and in fact, the Fantasia issue indicates the problem is already spreading. And concerns are mounting that if it defaults on its debt, it could spell disaster for China’s property market and send. The real estate sector has suffered tumbling sales, tight liquidity and a series of developer defaults since late 2021, with China Evergrande Group at the centre of the debt crisis. ![]() Picture: Jade Gao/AFPĪnd in a third blow to China’s struggling real estate sector, another firm, Sinic Holdings, also defaulted on a debt interest repayment this week, with Fitch ratings downgrading Sinic as a result. China Evergrande Group is deeply in the red to the tune of 300bn. Chinese real estate developer Fantasia Properties is now facing its own nightmare.
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