China braces for Evergrande Group downfall: Wall Street Journal report
Real Estate

China braces for Evergrande Group downfall: Wall Street Journal report

China is preparing for the downfall of debt-ridden China Evergrande Group, according to a Wall Street Journal (WSJ) report.

According to the WSJ report, the step has been characterised as getting ready for the possible storm by the officials.

The officials said local government authorities and state-owned enterprises have been directed to move in only at the last minute should China Evergrande Group fail to manage its affairs in an orderly manner, the WSJ reported.

The officials said that the local-level authorities have been tasked with preventing unrest and decreasing the ripple effect on home buyers and the broader economy.

Debt-ridden China Evergrande Group has dollar-bond interest payments of $83.5 million due on Thursday on an offshore bond of $2 billion and a $47.5 million dollar-bond interest payment due the following week.

If China's second-biggest property developer, Evergrande, fails to pay the interest within 30 days of the scheduled payment dates, both bonds will default.

As Beijing tightened rules in its property sector to rein back debt levels and speculation, the company, which epitomised the borrow-to-build business model, ran into trouble over the past few months.

Investors are concerned that a downfall could reach creditors including banks in China and abroad.

Image Source


Also read: China’s Evergrande: On a brink of collapse

Also read: China’s Evergrande Group records 70% fall in stocks in a year

China is preparing for the downfall of debt-ridden China Evergrande Group, according to a Wall Street Journal (WSJ) report. According to the WSJ report, the step has been characterised as getting ready for the possible storm by the officials. The officials said local government authorities and state-owned enterprises have been directed to move in only at the last minute should China Evergrande Group fail to manage its affairs in an orderly manner, the WSJ reported. The officials said that the local-level authorities have been tasked with preventing unrest and decreasing the ripple effect on home buyers and the broader economy. Debt-ridden China Evergrande Group has dollar-bond interest payments of $83.5 million due on Thursday on an offshore bond of $2 billion and a $47.5 million dollar-bond interest payment due the following week. If China's second-biggest property developer, Evergrande, fails to pay the interest within 30 days of the scheduled payment dates, both bonds will default. As Beijing tightened rules in its property sector to rein back debt levels and speculation, the company, which epitomised the borrow-to-build business model, ran into trouble over the past few months. Investors are concerned that a downfall could reach creditors including banks in China and abroad. Image SourceAlso read: China’s Evergrande: On a brink of collapse Also read: China’s Evergrande Group records 70% fall in stocks in a year

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code