Utopia Talk - Politics - Another Chinese developer default

Welcome to the Utopia Forums! Register a new account
The current time is Wed Apr 24 21:07:21 2024

Utopia Talk / Politics / Another Chinese developer default

murder
Member Tue Oct 05 07:54:53
Chinese developer Fantasia can't pay its debts. That's stoking real estate fears

Hong Kong (CNN Business)A Chinese developer of luxury apartments missed $315 million in payments to lenders on Monday, sparking fears that financial strains in the country's outsized property sector are spreading beyond the troubled Evergrande conglomerate.

Fantasia Holdings, a Shenzhen-based developer, missed repaying $206 million worth of bonds that matured Monday, the company said in a stock exchange filing. It is now assessing "the potential impact on the financial condition and cash position of the group," it added.

Separately, the property management unit of Country Garden, China's second largest developer by sales after Evergrande, said in a filing that Fantasia had failed to repay a company loan of about 700 million yuan ($109 million). Fantasia had informed the company that it would probably "default on [its] external debts," Country Garden Services added.

S&P and Moody's slapped "default" credit ratings on Fantasia and said the non-payment of principal would likely also put the company in default on its remaining bonds.

Read the rest here if you want to ...

http://www...ia-default-intl-hnk/index.html

Habebe
Member Tue Oct 05 08:01:18
Chinese real estate, the bubble that never bursts....until it does.

murder
Member Tue Oct 05 08:05:57

I'm wondering if it's going to get too big for even the government to contain. If it does, oh boy! :o)

Habebe
Member Tue Oct 05 08:08:43
Either way it will be interesting.China still has pretty much supreme command of the banks, so that gives them some different options.

jergul
large member Tue Oct 05 08:19:35
Like for limiting loss exposure to "default on [its] external debts,"?

:D

jergul
large member Tue Oct 05 08:22:13
Its one of the things about social democracies and beyond. State ownership is fine, so bailouts and losses can be privatised and asset recouperation going to the public.

As opposed to the US way of making risk public and profit private.

jergul
large member Tue Oct 05 08:25:15
One of my first stock adventures was in a bank that was failing in the late 80s. The state took it over, gave me 0 cents on the dollar, then sold off parts of it some years later for #profit.

Not coincidentally, the Norwegian State owns 1.5% of all publically listed stocks in the world.

Relevant here is because States do not have to play by the stupid rules the US inflicted upon itself when it does bail outs.

show deleted posts

murder Member	Tue Oct 05 07:54:53 Chinese developer Fantasia can't pay its debts. That's stoking real estate fears Hong Kong (CNN Business)A Chinese developer of luxury apartments missed $315 million in payments to lenders on Monday, sparking fears that financial strains in the country's outsized property sector are spreading beyond the troubled Evergrande conglomerate. Fantasia Holdings, a Shenzhen-based developer, missed repaying $206 million worth of bonds that matured Monday, the company said in a stock exchange filing. It is now assessing "the potential impact on the financial condition and cash position of the group," it added. Separately, the property management unit of Country Garden, China's second largest developer by sales after Evergrande, said in a filing that Fantasia had failed to repay a company loan of about 700 million yuan ($109 million). Fantasia had informed the company that it would probably "default on [its] external debts," Country Garden Services added. S&P and Moody's slapped "default" credit ratings on Fantasia and said the non-payment of principal would likely also put the company in default on its remaining bonds. Read the rest here if you want to ... http://www...ia-default-intl-hnk/index.html
Habebe Member	Tue Oct 05 08:01:18 Chinese real estate, the bubble that never bursts....until it does.
murder Member	Tue Oct 05 08:05:57 I'm wondering if it's going to get too big for even the government to contain. If it does, oh boy! :o)
Habebe Member	Tue Oct 05 08:08:43 Either way it will be interesting.China still has pretty much supreme command of the banks, so that gives them some different options.
jergul large member	Tue Oct 05 08:19:35 Like for limiting loss exposure to "default on [its] external debts,"? :D
jergul large member	Tue Oct 05 08:22:13 Its one of the things about social democracies and beyond. State ownership is fine, so bailouts and losses can be privatised and asset recouperation going to the public. As opposed to the US way of making risk public and profit private.
jergul large member	Tue Oct 05 08:25:15 One of my first stock adventures was in a bank that was failing in the late 80s. The state took it over, gave me 0 cents on the dollar, then sold off parts of it some years later for #profit. Not coincidentally, the Norwegian State owns 1.5% of all publically listed stocks in the world. Relevant here is because States do not have to play by the stupid rules the US inflicted upon itself when it does bail outs.
	show deleted posts

Your Name:
Your Password:
Your Message: