Debt-laden Chinese real estate giant Evergrande will sell assets for $ 1.5 billion. USD Business

The shares planned to be sold to the state-owned group are Evergrande’s first assets, which it will sell in an attempt to get out of the abyss of bankruptcy.

Experts worry that the chaotic companies, whose debt amounts to more than 300 bln. The collapse of US dollar debt could spill over into China’s banking and real estate sectors, and possibly the global economy.

The Shenzhen-based conglomerate has informed the Hong Kong Stock Exchange that it has agreed to sell 1.7 billion. Shenyang Shengjing Finance Investment Group of Shengjing Bank of China.

“The company’s liquidity problem has had a negative impact on Shengjing Bank,” the statement said, adding that the agreement still needs to be approved by the bank’s board.

The value of Evergrande shares in Hong Kong jumped more than 14 percent on Wednesday.

In addition, Wednesday falls the deadline for the company to pay 47.5 million. US dollar interest on US dollar-denominated bonds less than a week after the next installment was due.

It is not known whether the company has fulfilled its obligations, although it has a grace period of 30 days before it can be considered that the obligations have not been fulfilled. Still, last week the company reached an agreement to pay interest on yuan-denominated securities.

Fitch Ratings has downgraded China Evergrande Group’s credit rating from CC to C.

Bloomberg News reported on Tuesday that some creditors said Evergrande should pay another $ 260 million on Sunday. USD interest and that they intend to defend their rights if the company defaults.

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Beijing is not yet talking about the situation of the real estate giant, but there have been different opinions in the state media, depending on the prevailing views of the private company.

The state-run newspaper The Economic Daily said rules in China’s real estate sector could be relaxed to help Evergrande.

“We cannot simply relax the rules simply because new situations are emerging in individual housing companies,” the comment said on Wednesday. “We can’t go the old way again when real estate is used as a short-term economic stimulus.”

Over the weekend, the group’s electric vehicle division abandoned its planned debut on the Shanghai Stock Exchange, warning of the parent company’s “serious shortage of funds”, which forced it to suspend payments to employees and suppliers.


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