Chinese real estate giant Evergrande said on Monday it was facing unprecedented difficulties, but denied rumors that the company, which has the world’s largest debt, would soon go bankrupt.
The Hong Kong-listed company has owed more than $ 300 billion in debt over several years to finance rapid growth and acquisitions of a number of real estate and other assets, including the Chinese football team.
However, Evergrande has been struggling to pay its debts in recent years, and Beijing’s crackdown on the real estate sector has made it even more difficult to obtain financing, raising concerns about the company’s possible bankruptcy.
Recently, there have been growing reports of protests from home buyers in China, worrying about the security of their investments and forcing Evergrande to work to ease tensions.
“Recent comments on the Internet about the restructuring of Evergrande are completely untrue,” the company said.
The company explains that it has indeed encountered unprecedented difficulties, but will continue to implement its corporate commitment and seek to resume operations.
Capital Economics reported last week that Evergrande had 1.4 million properties by the end of June, which it is committed to completing.
Evergrande was reportedly downgraded for the second time in two days in early September, raising fears that the company would go bankrupt.
Many analysts warn that bankruptcy would have serious consequences for the world’s second-largest economy, employing 200,000 people in China and indirectly creating 3.8 million jobs.