One of China’s leading property developers, Blue Garden, failed to meet its interest payments on Wednesday, leaving less than 30 days to avoid a default. Amid the economic slowdown, the difficulty of policy responses to end the real estate recession was again demonstrated.
Hekkeien, with total debt of 1.4 trillion yuan ($28 trillion) at the end of last year, admits it underestimated the market decline, acknowledging it faces its biggest challenge since its founding in 1992. showed that. The company said it expects a net loss of up to 55 billion yuan in the first half of 2023. It had a surplus of about 1.91 billion yuan in the same period last year.
Holders of two dollar-denominated bonds issued by Hekkeien failed to receive interest payments on the Aug. 7 deadline, said bondholders who spoke on condition of anonymity.
A Bloomberg index that tracks China’s dollar-denominated junk bonds fell to its lowest level since last year on Wednesday as the company’s liquidity squeezes.
“The message conveyed in its latest announcement only confirmed investors’ worst concerns about the woes of China’s property market,” said Wee Liam Goh, portfolio manager at UOB Asset Management.
Residential building developed by Pekkeiyuan (Baoding, Hebei Province)
Photographer: Qilai Shen/Bloomberg
Original title:Country Garden Poses New Risk for China’s Economy: Credit Weekly(excerpt)
2023-08-14 01:56:25
#Risks #Chinas #Economy
