Some videos circulating on Chinese social media also showed what were described as Evergrande-related protests elsewhere in China. This followed chaotic scenes at the headquarters two days earlier, as disgruntled investors crowded its lobby to demand repayment of loans and financial products. On Wednesday, roughly 40 protesters stood near the entrance at Evergrande headquarters in Shenzhen, prevented from going inside by dozens of security personnel. "You can’t just let construction uncompleted a few hundred thousands families (will be affected)," he said. Most financial analysts aren’t optimistic about Evergrande. Even with ‘only’ 300 bn of debt, the developer is emblematic of the entire 62 trillion Chinese real estate industry. It is expected to default on bond payments in the coming days. Oscar Choi, founder and CIO of Oscar and Partners Capital Limited (OP Capital), said the government would talk to creditors on one hand, and use its local resources to prevent uncompleted apartments on the other. Evergrande is China’s second largest real estate. Market watchers said ensuring social stability will be the top priority for the Chinese government. Three of Evergrande's onshore exchange-traded bonds fell at least 20%, and one had its trading paused by the Shenzhen exchange.įitch also said the risk of significant pressure on house prices in the event of a default would be low, and it expected the government would act to protect households’ interests to ensure home deliveries. The company's property management unit (6666.HK) and EV unit (0708.HK), however, bounced 5.5% and 2.6%, respectively. read more DISGRUNTLED INVESTORSĮvergrande's Hong Kong-listed stock slipped another 5.4% to close at HK$2.81 on Wednesday, a fresh low since Jan 2014, while financial stocks were also weighed down by worries of the broader risks Evergrande's debt crisis might bring. The PBOC, China's central bank, and the nation's banking watchdog summoned Evergrande's executives in August in a rare move and warned that it needed to reduce its debt risks and prioritise stability. But the agency added a recent People’s Bank of China (PBOC) sensitivity test showed the average capital adequacy ratio of the 4,000 banks in the country would only drop modestly if the NPL ratio for property-development loans were to rise by 15 basis points.
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