China: Evergrande Group bankruptcy crisis: end of June debt, 1.97 trillion yuan
-Does the Chinese version of “Lehman Shock” occur?
Reuters:
China’s largest real estate developer,
Evergrande Group is in danger of bankruptcy,
It is reported that the financial markets have begun to compare with the Lehman shock.
The problem with the Evergrande Group is that it is “closely related to excess debt, which is a weakness of the Chinese economy.”
Chinese media such as securities bulletins:
The Evergrande Group announced on September 13 that “the company has encountered unprecedented difficulties. We will do our best to normalize our management.”
However, he emphasized that “the theory of bankruptcy is not true at all.”
Evergrande Group Debt:
Evergrande Group’s debt is 1.97 trillion yuan (35.614.7 trillion yen) as of the end of June
Evergrande Group’s equity capital remains at 411 billion yuan.
The debt ratio is 480%.
As an “evergrande group that relied on borrowing for a significant portion of its investment,” the cash flow was stalled.
Evergrande Group Stock Price:
The stock price of Evergrande Group was HK $ 2.81 on the Hong Kong stock market on the 15th.
It has fallen 83.25% from a year ago.
The Evergrande Group’s corporate bond price, which was $ 0.8 at the end of May, fell to $ 0.28 earlier this month.
Bad debts of the four major banks in China:
According to the Nihon Keizai Shimbun
Including China’s largest industrial and commercial bank,
Bad debts of the four major banks were released at the end of June
It was 1.32.5 trillion yuan.
It increased by 3.3% from the end of last year.
A significant portion of non-performing loans are real estate-related loans.
The collapse of the Evergrande Group could lead to a general liquidity crisis.
Evergrande Group Rating:
UK credit valuation firm Fitch Ratings has downgraded the Evergrande Group from “CCC +” to “CC.”
Joongang Ilbo |
https://s.japanese.joins.com/JArticle/283031?sectcode=300&servcode=300
China Evergrande reports that interest payments due 20 days cannot be fulfilled
-Serious liquidity crisis-
[Hong Kong 15th Reuters]
Ministry of Residential Urban Rural Construction of China:
The Evergrande Group of China has informed major banks that it is unlikely that it will be able to pay interest due on September 20th.
Bloomberg News:
On September 15th, it was told as a story of several people familiar with the situation.
Evergrande of China
About partial borrowing
In the direction of repayment deferral and rollover,
We are still in discussions.
The ministry said it held meetings with several banks this week.
Financial information service
REDD:
Last week, the Evergrande Group of China reportedly told two banks that it would suspend interest payments due this month.
Reuters
https://jp.reuters.com/article/china-evergrande-idJPKBN2GB0H6