No more pulling the rug, but suicide and consigned to the dustbin of history. Like the Soviet Union.
Sadly, other countries will be affected.
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Another China developer Fantasia going bankrupt soon...
- Thread starter Ralders
- Start date
No more pulling the rug, but suicide and consigned to the dustbin of history. Like the Soviet Union.
Sadly, other countries will be affected.
Chinese developer Fantastia misses bond payment as Evergrande teeters on collapse
Posted 9h ago
9 hours ago
, updated 7h ago
7 hours ago
Lobby of Fantasia in Beijing with signage at reception.
The Chinese real estate developer failed to make a $280 million payment due to bondholders.(AP: Ng Han Guan)
A mid-sized Chinese real estate developer has failed to make a $282 million payment due to bondholders, adding to the industry's financial strain as one of China's biggest developers tries to avoid defaulting on billions of dollars of debt.
Key points:
Fantasia has become the latest Chinese real estate developer to fail to make payments on debt obligations
The announcement comes as investors worry Evergrande Group might collapse with roughly $400 billion in debt
Chinese developers are struggling to repay debt after regulators tightened limits last year on their use of borrowed money
Fantasia Holdings Group announced it missed the payment in a statement issued through the Hong Kong Stock Exchange on Tuesday.
It gave no explanation but said it had asked for trading of Fantasia shares to be suspended.
Some Chinese developers are struggling to repay debt after regulators tightened limits last year on their use of borrowed money.
That is fuelling fears about possible defaults and turmoil in financial markets.
Investors await news on Evergrande
The news comes as investors worry that Evergrande Group might collapse with roughly $400 billion of debt.
Evergrande is one of China's largest property developers, claiming to own more than 1,300 projects in more than 280 cities across China.
In recent weeks, some commentators have pondered whether the collapse of the world's most indebted company will doom the global economy.
Some have even speculated that Evergrande's downfall could be the world's next "Lehman Brothers moment".
Fantasia's announcement adds to worries over China's property sector as property giant Evergrande teeters on the brink of collapse.(Reuters: Aly Song)
On Monday it suspended trading of its shares, pending an announcement in relation to a "major transaction".
The trading suspension came after the company missed two deadlines to pay over $180 million worth of interest to foreign investors in the space of one week.
Investors are still waiting on official news, but reports from China's Cailian Press suggested Hong Kong-listed property developer, Hopson Development, could take a majority stake in Evergrande Property Services.
Economists say Beijing can prevent a broader credit crunch if Evergrande defaults but wants to avoid bailing out the company or its creditors as a warning to other borrowers and lenders to be more disciplined.
Fantasia, valued by the stock market at $570 million, reported a 153 million yuan ($32 million) profit for the first half of 2021 and said revenue rose 18.5 per cent over a year earlier to 10.9 billion yuan ($2.3 billion).
"Fantasia's missed payment highlights its strained liquidity, despite its reported sufficient cash on hand," S&P Global Ratings said in a statement.
Fantasia said it had 27.1 billion yuan ($5.7 billion) in cash as of June 30, according to S&P.
"Asset disposals have been slower than we expected, failing to bring in liquidity sources in time."
The failure to pay is likely to trigger cross defaults on other Fantasia bonds, accelerating repayment on other debt, S&P said.
Hundreds of smaller Chinese developers have gone bankrupt since regulators began tightening control over the industry's financing in 2017 amid concern about rising debt and the possible risk of a financial crisis.
In March, another developer, Fortune Land Development Co said it missed interest and debt payments totaling 5.3 billion yuan ($1.1 billion).
Watch
Duration: 3 minutes 1 second
3m 1s
AP/ABC
Posted 9h ago
9 hours ago
, updated 7h ago
7 hours ago
Lobby of Fantasia in Beijing with signage at reception.
The Chinese real estate developer failed to make a $280 million payment due to bondholders.(AP: Ng Han Guan)
A mid-sized Chinese real estate developer has failed to make a $282 million payment due to bondholders, adding to the industry's financial strain as one of China's biggest developers tries to avoid defaulting on billions of dollars of debt.
Key points:
Fantasia has become the latest Chinese real estate developer to fail to make payments on debt obligations
The announcement comes as investors worry Evergrande Group might collapse with roughly $400 billion in debt
Chinese developers are struggling to repay debt after regulators tightened limits last year on their use of borrowed money
Fantasia Holdings Group announced it missed the payment in a statement issued through the Hong Kong Stock Exchange on Tuesday.
It gave no explanation but said it had asked for trading of Fantasia shares to be suspended.
Some Chinese developers are struggling to repay debt after regulators tightened limits last year on their use of borrowed money.
That is fuelling fears about possible defaults and turmoil in financial markets.
Investors await news on Evergrande
The news comes as investors worry that Evergrande Group might collapse with roughly $400 billion of debt.
Evergrande is one of China's largest property developers, claiming to own more than 1,300 projects in more than 280 cities across China.
In recent weeks, some commentators have pondered whether the collapse of the world's most indebted company will doom the global economy.
Some have even speculated that Evergrande's downfall could be the world's next "Lehman Brothers moment".
Fantasia's announcement adds to worries over China's property sector as property giant Evergrande teeters on the brink of collapse.(Reuters: Aly Song)
On Monday it suspended trading of its shares, pending an announcement in relation to a "major transaction".
The trading suspension came after the company missed two deadlines to pay over $180 million worth of interest to foreign investors in the space of one week.
Investors are still waiting on official news, but reports from China's Cailian Press suggested Hong Kong-listed property developer, Hopson Development, could take a majority stake in Evergrande Property Services.
Economists say Beijing can prevent a broader credit crunch if Evergrande defaults but wants to avoid bailing out the company or its creditors as a warning to other borrowers and lenders to be more disciplined.
Fantasia, valued by the stock market at $570 million, reported a 153 million yuan ($32 million) profit for the first half of 2021 and said revenue rose 18.5 per cent over a year earlier to 10.9 billion yuan ($2.3 billion).
"Fantasia's missed payment highlights its strained liquidity, despite its reported sufficient cash on hand," S&P Global Ratings said in a statement.
Fantasia said it had 27.1 billion yuan ($5.7 billion) in cash as of June 30, according to S&P.
"Asset disposals have been slower than we expected, failing to bring in liquidity sources in time."
The failure to pay is likely to trigger cross defaults on other Fantasia bonds, accelerating repayment on other debt, S&P said.
Hundreds of smaller Chinese developers have gone bankrupt since regulators began tightening control over the industry's financing in 2017 amid concern about rising debt and the possible risk of a financial crisis.
In March, another developer, Fortune Land Development Co said it missed interest and debt payments totaling 5.3 billion yuan ($1.1 billion).
Watch
Duration: 3 minutes 1 second
3m 1s
AP/ABC
So xi jinping is giving notice he does not want foreign investors after getting know how from them. China can do it alone from now on.China Steps Up Efforts to Ring-Fence Evergrande, Not Save It
Bloomberg News
Mon, 4 October 2021, 5:42 pm·6-min read
In this article:
Read more on this topic
China Steps Up Efforts to Ring-Fence Evergrande, Not Save It
(Bloomberg) -- As China Evergrande Group edges closer to a massive restructuring, Beijing has stepped up efforts to limit the fallout, signaling it’s willing to prop up healthy developers, homeowners and the real estate market at the expense of global bondholders. In the last week alone, Chinese authorities have dispatched top financial regulators to nudge the country’s massive banks to ease credit for homebuyers and support the property sector. They also bought out part of Evergrande’s stake in a struggling bank to limit contagion. The central bank meanwhile has pumped 790 billion yuan ($123 billion) into the financial system over 10 days to ease liquidity.
Most Read from Bloomberg
The moves underscore that China will do everything it can to ring-fence Evergrande, while showing little interest in a direct bailout of the developer that has roiled global markets for weeks. That doesn’t bode well for bondholders -- both onshore and abroad -- looking for some kind of rescue from the Chinese government. “The first obligation is going to make sure that homeowners who bought those homes take delivery and are made whole,” said Marathon Asset Management Chief Executive Officer Bruce Richards, who started buying Evergrande debt last week. “At the very end of the pecking order are offshore bondholders.” For China, the risk of contagion far outweighs any potential damage from an Evergrande collapse on its own. Though Evergrande is one of the largest developers in China, it accounts for just 4% of sales in the country. A run on property firms in the wake of an Evergrande failure threatens to destabilize an industry that accounts for 29% of China’s economy, according to new research from Harvard University economist Ken Rogoff.
Read more: Evergrande Debt Crisis Is Financial Stress Test No One Wanted
Already, developers such as Sunac China Holdings Ltd. and Guangzhou R&F Properties Co. have plunged in trading, while their bond yields have soared. Some 12 real estate companies have reported bond defaults in the first half of this year, amounting to 19 billion yuan, according to Moody’s Investors Service.
Evergrande and its property services arm were halted in Hong Kong stock trading pending an announcement on a “major transaction,” the developer said Monday in a stock exchange filing. Hopson Development Holdings Ltd. plans to acquire a 51% stake in Evergrande’s property services unit, according to Chinese financial news platform Cailian, citing unidentified people.
China also faces a potential backlash from the 1.6 million homebuyers who put deposits on Evergrande apartments that have yet to be built. Getting those projects completed would help avert the type of social unrest sparked last month by retail investors demanding payment on some 40 billion yuan in Evergrande high-yield investment products.
“A disorderly default of Evergrande is unlikely because of the broad-based risk it presents to a large amount of the Chinese population,” said Alejandra Grindal, chief economist at Ned Davis Research Inc. “The government is probably less concerned about restructuring the offshore debt.”
Story continues
Not to mention all the Tiong developments in JB. Good luck to all the Sinkies who bought properties in Iskandar and elsewhere. They will be worthless soon, even without help from the mats.
Fantasia is building a leasehold project in Hougang called Parkwood collection, due to complete this year according to propertyguru.
Will it be affected?
https://www.propertyguru.com.sg/project/parkwood-collection-23661
Will it be affected?
Project Name | Parkwood Collection |
Project Type | Multiple |
Developer | Fantasia (Park) Pte Ltd |
Tenure | 99-year Leasehold |
Completion Year | 2021 |
# Of Floors | 3 |
Total Units | 53 |
One mega china city is 3 times or more bigger than sinkie. Even wuhan, population wise, is bigger than sinkie. Our biggest developer, capital land, is a micro developer in china.
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