Two Chinese property firms Evergrande, Kaisa default on $1.6 billion in bonds: Fitch

#Business, #China, #Evergrande, #Fitch Ratings, #Kaisa, #Real Estate, #World News

(Image: Reuters)

Two major Chinese property firms have defaulted on $1.6 billion worth of bonds to overseas creditors, Fitch Ratings agency said Thursday, as contagion spreads within the country’s debt-ridden real estate sector.

The Chinese government sparked a crisis within the property industry when it launched a drive last year to curb excessive debt among real estate firms as well as rampant consumer speculation.

Companies that had accrued huge debt to expand suddenly found the taps turned off and began struggling to complete projects, pay contractors and meet both domestic and foreign repayments.

Real estate behemoth Evergrande has been the highest profile firm embroiled in the crisis, struggling for months to raise capital to pay off $300 billion in debt.

On Thursday, Fitch confirmed the company had defaulted for the first time on more than $1.2 billion worth of bond debt, as it downgraded the firm’s status to a restricted default rating.

Fitch also confirmed Kaisa, a smaller property company but one of China’s most indebted, had also defaulted on $400 million of bonds.

Evergrande’s troubles first surfaced in the summer when it made clear how heavily leveraged the firm had become.

The eye-watering figures shook China’s credit markets because the sheer size of the company and the potential fallout should it collapse.

Last month it missed its first foreign bond repayment but there was a 30-day grace period attached. That ran out on Tuesday with some bond owners complaining they had yet to be repaid.

Questions have swirled over whether Evergrande is simply too big to be allowed to fail, given its collapse could send shock waves through the wider Chinese economy.

But signs now point to Beijing being willing to close the chapter on the 25-year-old real estate empire that has typified China’s breakneck growth in recent decades.

After Evergrande said Friday it may not be able to meet its financial obligations, the government summoned the company’s founder and announced several moves that have given the clearest picture yet of Beijing’s plans to end the crisis.

A new seven-strong “risk management committee” has been set up to manage the restructuring. Only two executives from the company are on the committee — others include officials from state entities.

Guangdong’s provincial government is also sending a working team to the company, which analysts at Jefferies said indicated a “potential takeover of Evergrande”.

Kaisa is China’s 27th-largest real estate firm, a minnow compared to Evergrande.

But its default will do little to calm investor nerves.

According to Bloomberg News, before Thursday, at least 10 lower-rated real estate firms have now defaulted on onshore or offshore bonds since the summer.

Before Thursday, Chinese borrowers had defaulted on a record $10.2 billion of offshore bonds, Bloomberg had reported, with real estate firms accounting for 36 percent of those non-repayments.

News Related

OTHER NEWS

CCI imposes penalty on four maritime transport companies for cartelisation

CCI passed this order on the basis of available evidence which revealed that there was an agreement between NYK Line, K-Line, MOL and NMCC with the objective of enforcement of ... Read more »

Tips to guide you withyour first cryptocurrency investment

Digital currency has turned into an inexorably famous venture resource for investors. Regardless of its instability, investors seem quick to get on board with the crypto fleeting trend. The justification ... Read more »

Best Crypto Exchange 2022

Because of the mind-boggling development in digital money exchanging, more individuals than any time in recent memory are searching for the best crypto trade to collaborate with to contribute viably. ... Read more »

Figuring out Bitcoin

Bitcoin is Digital Money Indeed! In the same way as other different sorts of cash like the yuan, the dollar, the euro, and the ruble, Bitcoin is genuine cash. It ... Read more »

Tesla Officially Enters The Turkish Market

© InsideEVs Tesla Model 3 (MIC) in China The EV automaker is expanding its European operations. Tesla delivered 936,000 vehicles around the globe last year, up 87 percent from its 2020 ... Read more »

How to Invest in Cryptocurrency

Digital currency has moved into the standard as a speculation resource class. Assuming you’re hoping to add some to your portfolio, it could be hard to sort out some way ... Read more »

Importance of affiliate marketing

A lot of benefits for e-commerce businesses can be provided through Affiliate marketing. As per ongoing examinations, 81% of brands depend on affiliate connections since they include next to no ... Read more »

Top benefits of performance marketing

Performance marketingis a presentation-based type of paid promoting and publicizing where a business just pays once an ideal activity is accomplished. These activities – settled upon by the business and ... Read more »

Morgan Stanley CEO James Gorman edges past Jamie Dimon with $35M payday

Morgan Stanley CEO James Gorman’s compensation hit a new high in 2021. Bloomberg via Getty Images Morgan Stanley CEO James Gorman raked in $35 million in total compensation last year ... Read more »

3 reasons to invest in COVID test manufacturer Abbott Laboratories

When it comes to underrated healthcare stocks that smart investors love, Abbott Laboratories(NYSE: ABT) takes the cake. While it might not seem as exciting as its similarly-sized peers in pharma ... Read more »

Gas reserves record low in European, Ukrainian UGS — Gazprom

As of January 22, the active gas volume in European storages was 26% lower than last year Read more »

Gazprom registers new daily record of gas supplies to China

Earlier, it was reported that Russian gas supplies to China during the first half of January were 1.5 times higher than the figure in the like period of the last year Read more »

Importance of crypto

A couple of years prior, in the event that you had referenced the expression “digital money” as far as I might be concerned, I would have envisioned cash of some ... Read more »

Guide for cryptocurrency

What is cryptocurrency? A digital currency (or “crypto”) is a type of payment that can course without the requirement for a focal financial authority like an administration or bank. Empowering ... Read more »

A small guide for cryptocurrency trading for beginners

What is Cryptocurrency Trading? Prior to getting straightforwardly to digital money exchanging, let us comprehend the significance of trading. Exchanging can be characterized as the conservative idea of trading resources. ... Read more »

How will the future business be transformed forever through cryptocurrency?

On the off chance that you haven’t exactly yet gotten used to the possibility of digital money, you are following some great people’s example. Just an expected 15% of Americans ... Read more »

ACM fines Apple 5 million euros in App Store case

Apple does not meet the requirements set by the Dutch Authority for Consumers and Markets (ACM) in a decision on the App Store case. The company will therefore receive a ... Read more »

Future of cryptocurrency

Cryptographic money has turned into a worldwide phenomenon lately, albeit a lot is still to be found out with regards to this developing innovation. There are many worries and stresses ... Read more »

About Bitcoin and it's working

Working liberated from the oversight of banks or any focal control or state run administrations, Bitcoin is an advanced cash. It rather depends on cryptographyandshared programming. Copies of Bitcoin transactions ... Read more »

Inflation could lead Fed to hike rates more than 4 times in 2022: Goldman Sachs

Fed Chair Jerome Powell acknowledged the likelihood of several rate hikes. Graeme Jennings-Pool/Getty Images The Federal Reserve could hike interest rates more times than expected this year as it aims ... Read more »

Advantages of bitcoin trading

Bitcoin (BTC) is a digital currency and an inventive installment network that was enrolled right after the 2008-09 emergency. Computerized money offers a few advantages, for example, lightning-quick exchanges and ... Read more »

Predictions for cryptocurrency in 2022

Cryptographic money has blast in ubiquity throughout the course of recent years, to the point that the elective venture class has basically gone standard. While Bitcoin was the first and ... Read more »

Bitcoin vs. Ethereum

It’s nothing unexpected that investors are keen on cryptographic forms of money. Bitcoin (BTC), the first in the resource class, was the single best-performing standard interest somewhat recently, and its ... Read more »

DDMA meet on January 27 likely to decide on weekend curfew, odd-even rule for opening shops in Delhi

Representative image Amid demands of lifting weekend curfew and odd-even system of opening shops by traders as well as the AAP and the BJP, Delhi’s apex COVID-19 management body DDMA ... Read more »

NFT collector Crypto Sauga launches 10,000 digital assets on WazirX NFT marketplace

Representational image. [Image: Shutterstock] CryptoSauga Star Club (CSS), a platform offering non-fungible tokens (NFTs), on January 24 announced a drop of 10,000 digital artworks on WazirX NFT marketplace. CSS is a project by ... Read more »

UK to scrap COVID tests for fully vaccinated travellers

Punjab Chief Minister Charanjit Singh Channi has appealed to people to get themselves vaccinated against COVID-19 at the earliest. (Representative image) Fully vaccinated travellers entering England will soon be exempt ... Read more »

Benefits of Using Apps in Crypto Trading

Cell phones have made some amazing progress, from gadgets that could settle on decisions and send instant messages to undeniable regular registering machines with applications and brilliant availability. With the ... Read more »

Strategies for Day Trading Cryptocurrency

The expression “informal investor” comes from the financial exchange, where exchanges commonly just occur during normal business hours on non-weekend days. One outstanding contrast when day-exchanging cryptographic money is that ... Read more »

China levanta confinamiento en ciudad de Xian tras controlar brote de covid

Las autoridades de China pusieron fin este lunes al confinamiento de los habitantes de la ciudad de Xian (norte), uno de los más largos del país, y anunciaron el levantamiento de ... Read more »

Benefits of Review Websites

Assuming you are betting aficionado, you need to stake the cash in the best gambling club site. Be that as it may, realizing the best is difficult as we might ... Read more »

Reports about reducing gas supplies to EU amid sanctions are ‘fake hysteria' — Kremlin

In the most difficult moments of confrontation between East and West, Russia flawlessly fulfilled its contractual obligations, Dmitry Peskov recalled Read more »

Sonia, Manmohan Singh, Rahul Gandhi, Ghulam Nabi Azad among Congress star campaigners for first-phase poll in UP

Sonia Gandhi and Rahul Gandhi at a party briefing. (File image: Reuters) The Congress on Monday released its list of 30 star campaigners for the first-phase assembly election in Utar ... Read more »

Dutch regulator fines Apple €5m in dispute over dating app payment rules

Photo: Depositphotos.com Dutch consumers authority ACM has fined tech giant Apple €5m for failing to meet its requirements on payment systems for dating apps, which limit makers to using Apple’s ... Read more »

No assessment for capital in box 3 for the time being

The Tax and Customs Administration does not impose an assessment on people who have assets in box 3 ‘until further notice’. Due to a recent decision of the Supreme Court, ... Read more »

National Restaurant Association asks Congress for more grant money as omicron hits industry

People dine at an outdoor dining patio set up at a restaurant on March 18, 2021 in New York City.Angela Weiss | AFP | Getty Images The National Restaurant Association ... Read more »

Delhi slashes number of dry days to 3, down from 21 earlier

The Delhi government under its new excise policy has reduced the number of dry days to just three from 21 last year, according to an official order issued on Monday. ... Read more »

Experts against green EU label for gas and nuclear energy

Photo: ANP Gas and nuclear energy are not sustainable or green, says an important group of experts in a report for the European Commission. The so-called Sustainable Financing Platform thus ... Read more »

'Boycott Amazon' calls on Twitter over products depicting Indian flag, tricolours

Last week, the ecommerce giant had conducted a sale ahead of the 73rd Republic Day on January 26. (Representative image) Ahead of Republic Day, e-commerce giant Amazon is facing the ... Read more »

Gas prices in Europe surpass $1,100 first time since December 27

The overall increase in gas prices since the beginning of the trading day is 19.4% Read more »

Britain's efforts to become a global power are mired in scandal, says former PM Gordon Brown

The U.K.'s ambitions to position itself as a global power are facing a setback as a string of domestic political dramas continue to distract the government from its international responsibilities, ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic