Advertisement

Updated October 26th, 2021 at 10:28 IST

Evergrande resumes work on more than 10 property projects amid China's crackdown

Amid fears of Evergrande's defaulting on several payments affecting the global economy, the firm has now confirmed the resumption of several projects.

Reported by: Vishnu V V
Evergrande
Image: AP | Image:self
Advertisement

The Chinese real-estate giant, Evergrande on Sunday said that it had resumed work on more than 10 projects in six cities including Shenzhen. The statement regarding the resumption of work comes a week after it appeared to avert default with a last-minute bond coupon payment. It is to be noted that the Chinese real-estate firm currently carries USD 300 billion in debt.

Amid fears of Evergrande's defaulting on several bond interest payment deadlines affecting the global economy, the firm has now confirmed a restart of construction at several of its projects. The real-estate firm on Sunday took to its Wechat account that some of the projects resumed work and had entered the interior decoration stage. During late August, the company informed the stalling of some of its ongoing projects due to delays in payment to suppliers and contractors. 

According to AP, they also noted that a few other buildings had recently finished construction. The company also claimed that its efforts to guarantee construction would shore up market confidence. On Friday, Evergrande's share price jumped more than four per cent in Hong Kong, only a day after it had dropped more than 12 per cent sparked by its announcement that the planned sale of its property services unit had fallen through. Earlier on October 21, BBC had reported that the hugely indebted Chinese real estate developer had stopped its shares from trading ahead of an announcement.

Evergrande crisis 

Meanwhile, it is worth mentioning that China's second-largest property developer has been reeling under debt since the Communist government tightened limits on corporate debt levels. The crisis over Evergrande began in 2020 when Beijing, worried by sprawling debt in the real estate industry, brought in new rules to control the amount owed by giant developers. The company hit an initial stumbling block last year to meet the interest payments on its debts. However, now, things have gone from bad to worse as its share price has tumbled and its bonds have been downgraded by global credit rating agencies. 

Evergrande’s chairman and founder Hui Ka Yan has said that now its plan is to try to secure extensions for its debts and “other alternative arrangements” with its creditors. However, Hui also added that there is “no guarantee” that the group will be able to meet its financial obligations. As per reports, last week, Evergrande had been granted a three-month extension on another of its debts after agreeing to provide extra collateral. 

Image: AP

Advertisement

Published October 26th, 2021 at 10:28 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement

Trending Quicks

Virat Kohli and Gautam Gambhir
a minute ago
Bharat Rashtra Samithi (BRS) Rajya Sabha MP Keshava Rao is set to join the Congress party.
5 minutes ago
Byju's leadership dispute
7 minutes ago
Pulkit Samrat
13 minutes ago
Lok Sabha Elections 2024 LIVE
13 minutes ago
Xiaomi 14 Ultra
15 minutes ago
Sunita Kejriwal urged people to send ‘messages of support’ to Delhi CM
16 minutes ago
Allu Arjun Unveils His Wax Statue At Madame Tussauds In Dubai
17 minutes ago
Piyush Kumar, GATE 2024 CSIT Topper
20 minutes ago
A poster of Crew
22 minutes ago
How to Keep Yourself Safe from Unhealthy Air?
24 minutes ago
Advertisement
Advertisement
Advertisement
Whatsapp logo