Evergrande Group, once the biggest property developer by sales, was ordered by a Hong Kong court to begin its liquidation process, which may take up to five years to complete. The Shenzhen-based company had tried to buy time to implement its debt-restructuring plan and deliver more apartments to its customers since Top Shine Global, one […]

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Worries that Evergrande Group will go bankrupt have intensified with news that the indebted property developer’s chairman, Hui Ka-yan, is under police surveillance. Hui was taken away by Chinese police earlier this month and is being monitored at a designated location, Bloomberg reported, citing people familiar with the situation.  The report said the billionaire is […]

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China’s financial authorities have decided to cut the down payment ratios and mortgage interest rates for homebuyers to stimulate property prices ahead of the traditional high season in late September and October. Minimum down payment ratio for the first-time homebuyers will be lowered from 30% to 20% while that for the second-time buyers will be […]

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On November 11, 2022, the People’s Bank of China and the former Banking and Insurance Regulatory Commission issued a joint notice outlining 16 supporting policies for the real estate sector.  It was aimed at “maintaining orderly and stable real estate financing, improving financial services for building handover, handling risks of distressed real estate companies, and increasing financial […]

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An application in the United States seeking protection from creditors while Evergrande Group restructures its heavy debt has burdened Chinese stocks as it fueled investors’s concerns about China’s property crisis. Evergrande asked protection from creditors under Chapter 15 of the US bankruptcy code, which is invoked when insolvency cases involve multiple countries. The company said it […]

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Will China’s spreading property crisis spread to banks and financial institutions? Falling home prices have in recent months disrupted Chinese property developers’ plans to sell their units, repay bank loans and purchase lands. Real estate firms’ huge losses and declining stock prices have alarmed investors far and wide.  Zhongzhi Enterprise Group, one of the largest […]

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Falling property prices in China have caused debt problems for not only private developers such as Evergrande and Country Garden, but also state-owned ones, which are supposed to be able to get financial resources from their rich parents. Sino-Ocean Group, a state-owned property developer, said Monday that it had failed to pay interest of US$20.9 […]

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A 36-year-old wealth management firm in China with more than 100,000 high-net-worth clients delayed payment of its maturing wealth products as both the company and its parent firm faced a liquidity crunch due to soured investments in the property sector. Zhongrong International Trust, formerly known as Harbin International Trust, which was established in 1987, has failed […]

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The cash crunch at Country Garden, once the largest property developer in China by sales, has worried many homebuyers who have paid for but not yet received their apartments. Some commentators called on the Chinese government to look into the matter and ensure that the property developers will deliver apartments to buyers. The calls came […]

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