Sat. Jul 13th, 2024

‘Debt bomb’ Evergrande lost more than 80 billion USD

'Debt bomb' Evergrande lost more than 80 billion USD 2
'Debt bomb' Evergrande lost more than 80 billion USD 2

China Evergrande Group announced on July 17 that it will present its debt restructuring plan in courts in Hong Kong and the Cayman Islands on July 24 and 25.

Evergrande is still reeling from the real estate crisis that has dragged down the world’s largest economy over the past two years.

39 buildings developed by Evergrande Group on the artificial island of Huayang in Hainan province (China), January 2022.

In April, Evergrande said 77% of investors holding Class A bonds approved this plan.

Evergrande yesterday also announced its financial statements for 2021 and 2022, which have been delayed for a long time.

This is the first time Evergrande has recorded 2 years of losses since listing in 2009. In 2020, before the real estate crisis in China broke out, Evergrande made a profit of 8 billion yuan.

News about Evergrande caused real estate stocks in China to go down this morning.

Evergrande, like other Chinese real estate firms, has been in crisis since mid-2021. The reason is said to be Beijing’s `three red lines` policy, launched to reduce systemic risks by

Evergrande suffered the heaviest damage, due to abuse of financial leverage to develop projects and multi-industry businesses.

However, Evergrande’s home sales have plummeted since before the crisis.

Meanwhile, the company’s debt is increasingly expanding.

Still, Evergrande’s shares may soon be trading again.

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