China's most indebted firm is too big to fail

- There's a lot working against China's most indebted property firm. China Evergrande Group is sitting on US$113.7 billion in debt and its core profit fell 45 per cent in the first half of the year. Real-estate growth is slowing, with banks under orders to curb home loans. President Xi Jinping's refrain that houses are for living in, not speculation, has been cropping up more frequently.

Investors are voting on this folly with their feet. The company's shares have fallen 30 per cent this year, making Evergrande the worst performer among Hong Kong-listed Chinese developers. The property firm's borrowing costs are among the highest in the offshore dollar market and its bonds are tumbling.

Crucially, Evergrande has China's largest land reserve, with 276 million square metres of gross floor area, according to Citigroup. While the developer has a lot of exposure to China's smaller cities, where growth is slowing rapidly, it also dominates redevelopment in big, rich cities such as Shenzhen, where profit margins are robust.

Source: Loan Digest (loandigest.net)

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

China, US to collect additional tariffs on each other's goodsChina and the United States will begin imposing additional tariffs on each other's goods on Sunday, the latest escalation in a bruising trade war ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

China expels WSJ reporter who wrote about Xi's cousinBeijing said journalists who attack China were 'not welcome' in the country, after it failed to renew the press credentials of a foreign journalist who wrote an article about one of President Xi Jinping's cousins. It amounts to the effective expulsion of Chun Han Wong, a Singaporean national
Source: YahooSG - 🏆 3. / 71 Read more »

'Take home bedsheets, towels used by singer Karen Mok': China hotel fined over gimmickA hotel in China, where Karen Mok was a guest, has been mocked by netizens for trying to cash in on her fame.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »

Filipino 'sponge boy' bound for China with university scholarshipMANILA (XINHUA) - Mr Melvin Chua, 23, knows every narrow street of an urban district called Pembo in the Philippines' capital city Manila like the back of his hand.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »

This China Hotel Wants You To Take Home Karen Mok’s Used Bedsheets And Towels
Source: TODAYonline - 🏆 1. / 99 Read more »

Musk’s China charm offensive yields Tesla tax break, publicity[BEIJING] Elon Musk‘s charm offensive in China appears to have paid off. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »