Categories: World

300 billion francs in debt: Evergrande’s shares collapsed again

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More than 300 billion francs: no other real estate company in the world has built up a higher debt mountain.

When trading started in Hong Kong on Monday morning, the value initially fell by about 25 percent, but then recovered somewhat.

Local authorities announced on Saturday that an unspecified number of employees of the financial subsidiary Evergrande Wealth Management had been arrested. They did not provide more precise information on the number or identity of those arrested, nor on the charges against them. In their statement, police simply urged the public to report suspected cases of fraud.

More about Evergrande
Real estate crisis in China
Evergrande declares itself insolvent in the US
Evergrande has serious consequences
Swiss banks are suffering from the Chinese real estate crisis
The growth miracle is over
China – the country of the sinking economy

Payment arrears and project cancellations

Evergrande has amassed debts estimated at more than 300 billion francs and is at the center of the crisis in China’s construction sector. In 2020, Chinese authorities responded to the sector’s escalating debt burden with restrictions on obtaining loans. This led to payment delays and project cancellations, especially at Evergrande.

Acquisition of Evergrande Life Insurance

On Friday, the National Financial Supervisory Authority gave the green light to the takeover of Evergrande’s bankrupt insurance subsidiary, Evergrande Life Insurance. The buyer is a new state-owned company set up for this purpose, called Haigang Life Insurance.

(AFP)

Source: Blick

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