Updated on Tuesday, 5 October 2021 – 12:51
Evergrande’s suspension from the Hong Kong Stock Exchange continues for the second consecutive session
A worker walks past an advertisement for an Evergrande-owned development in China Vincent YuAP
The Chinese promoter Fantasia Holdings has confirmed that this Monday he could not cope with the Payment obligations for the maturity of a debt amounting to 205.65 million dollars (177 million euros), fueling the uncertainty surrounding the leveraged Chinese real estate sector, whose greatest exponent is the giant Evergrande, whose shares have been suspended from trading for the second consecutive session on the Hong Kong Stock Exchange.
In a statement, Fantasia Holding, a medium-sized developer without the size of Evergrande, has announced that it “did not meet the payment” on the maturity date (October 4) of bonds in the amount of 205.65 million dollars. .
“The company’s board of directors will assess the potential impact on the group’s financial position and liquidity under this circumstance,” said the Chinese firm, whose shares remain suspended from trading at their own request on the Hong Kong Stock Exchange.
The ‘default’ of Fantasia Holding adds to the concerns unleashed by the situation of the real estate giant Evergrande, whose negotiation has been interrupted since yesterday in the Hongkons park pending information on an important transaction.
In this sense, the Chinese agency Caixian News, citing sources familiar with the situation, reported this Monday that its competitor Hopson Development Holdings would be negotiating the purchase of around 51% of the shares of Evergrande Property, thus acquiring control of the company, for about 40,000 million Hong Kong dollars (4,428 million euros).
Evergrande recognized at the end of last August the risk of incurring non-payment due to the difficulties in obtaining the necessary liquidity due to the suspension of work in several of the projects developed by the company.
In its search for liquidity to face debt maturities, the Chinese giant agreed last week the sale of 19.93% of the Chinese bank Shengjing Bank for 9,993 million yuan (1,312 million euros) that will be used to reduce your debt.
In the first six months of its tenure, the company recorded a 28.9% drop in net profit, up to 10.499 million yuan (1.375 million euros), while billing fell by 16.5% compared to the first half of 2020, to 222,690 million yuan (29,166 million euros).
On the other hand, the Chinese firm reported that in the first semester its liabilities amounted to 1,966 trillion yuan (257,490 million euros), with a debt of 571,775 million yuan (74,886 million euros)including 240,049 million yuan (31,439 million euros), the 42% of the total, in debt with short-term maturity.
On its side, the company had liquidity or equivalents amounting to 86,772 million yuan (11,364 million euros), a figure one Four. Five% lower than that recorded a year earlier.
The vice president of European Central Bank (ECB), Luis de Guindos, he assured this Monday that “the exposure of European banks and entities (to Evergrande) is relatively low”, although he pointed out that the situation of the Chinese firm serves to highlight the risks derived from leverage.
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