Monday, November 01, 2021

Evergrande and these Chinese real estate developers are already in trouble

By Anneken Tappe and Diksha Madhok, CNN Business

China's real estate crisis isn't showing any sign of letting up.

Embattled conglomerate Evergrande rattled global markets in September by warning it could default on its huge debts. Since then, more developers have made similar public confessions, unnerving investors and raising fears of contagion across the vast sector.

It's unclear how the crisis will be resolved. The companies could try to restructure their debts and work things out with their lenders. They could also seek bailouts from the Chinese government.

With total liabilities of some $300 billion, including $20 billion in international bonds, Evergrande is China's most indebted real estate company. At the end of September, Evergrande raised $1.5 billion in cash by selling part of its stake in a Chinese bank.