What is China Evergrande? Know the basics here!
News

What is China Evergrande? Know the basics here!

It takes approx. 1 minutes to read this article

The second-largest property developer in China – The Evergrande Group, is under fire as the company is struggling to pay its debt. Fitch, one of the world’s biggest credit rating agencies, announced the Evergrande group at default. The company wouldn’t be able to publish its financial report by the end of March 31.

Why is China Evergrande in trouble?

Last year, a new rule related to property was announced in Beijing. The rule controls the amount held by the big real estate groups. Evergrande ended up selling real estate at heavily discounted prices to keep the business afloat. As a result, now the company is struggling to meet its interest and debt. The company borrowed $300 billion to expand the business.

The Evergrande group is dealing with financial and social pressure as they have to deliver the pre-sold housing projects and salaries of workers and employers. Now Chinese authorities would have to interfere to resolve the matter, including the sales of the founder’s personal assets to repay the debt. 

Photo: Pascal Müller/unsplash.com

Add comment

Your email address will not be published. Required fields are marked *

*

Recommended articles
Exploring the versatility and customization of modular buildings
Learn about the unique adaptability of modular buildings and how their components can be tailored to meet specific requirements, presenting a future-forward approach to construction.
Should Businesses Utilize Residential Solar Panels?
Should Businesses Utilize Residential Solar Panels?
Residential solar power systems have become an increasingly attractive option for businesses looking to reduce their environmental impact.
Understanding the importance of quality roofing and exterior services for your home
Understanding the importance of quality roofing and exterior services for your home
Explore the value of investing in professional roofing and exterior services. Learn how quality workmanship can enhance the longevity and overall aesthetic of your home.
Latest articles