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China property giant Evergrande admits debt crisis as protesters besiege HQ
Source: The Guardian
China property giant Evergrande admits debt crisis as protesters besiege HQ
Disgruntled investors voice anger at headquarters as company appoints advisers and says firesale of assets won’t cover debts
Martin Farrer
Tue 14 Sep 2021 10.42 BST
Property giant China Evergrande Group has said that it cannot sell properties and other assets fast enough to service its massive $300bn debts, and that its cashflow was under “tremendous pressure”.
Only hours after angry investors besieged its Shenzhen headquarters and the company denied it was set for bankruptcy, Evergrande issued a statement to the Hong Kong stock exchange saying that a significant drop in sales would continue this month, which was likely to further deteriorate its liquidity and cash flow.
The company blamed “ongoing negative media reports” for dampening investor confidence, resulting in a further decline in sales in September – usually a strong month for sales in China.
-snip-
Evergrande is one of the world’s most indebted companies, and has seen its shares tumble 75% this year, sparking fears among analysts of “a risk of contagion” spreading through China’s overheated property sector and also its banking system.
-snip-
Disgruntled investors voice anger at headquarters as company appoints advisers and says firesale of assets won’t cover debts
Martin Farrer
Tue 14 Sep 2021 10.42 BST
Property giant China Evergrande Group has said that it cannot sell properties and other assets fast enough to service its massive $300bn debts, and that its cashflow was under “tremendous pressure”.
Only hours after angry investors besieged its Shenzhen headquarters and the company denied it was set for bankruptcy, Evergrande issued a statement to the Hong Kong stock exchange saying that a significant drop in sales would continue this month, which was likely to further deteriorate its liquidity and cash flow.
The company blamed “ongoing negative media reports” for dampening investor confidence, resulting in a further decline in sales in September – usually a strong month for sales in China.
-snip-
Evergrande is one of the world’s most indebted companies, and has seen its shares tumble 75% this year, sparking fears among analysts of “a risk of contagion” spreading through China’s overheated property sector and also its banking system.
-snip-
Read more: https://www.theguardian.com/world/2021/sep/14/china-property-giant-evergrande-admits-debt-crisis-as-protesters-besiege-hq