October 27, 2021
2 mins read

CHINA CRISIS: Another Realtor Defaults

Modern Land last Wednesday abandoned a proposal to extend repayment on the bond and the next morning halted trading of its stock and debt securities pending another announcement …reports Asian Lite News

Modern Land China has become the latest developer from Asia’s largest economy to miss a dollar bond payment, underscoring the stress spreading across the sector, Nikkei reported.

The company failed to pay interest and principal due on a $250 million bond, according to a filing on Tuesday with the Singapore stock exchange, where the bond is listed.

The repayment was not met, “Owing to unexpected liquidity issues arising from the adverse impact of a number of factors including the macroeconomic environment, the real estate industry environment and the Covid-19 pandemic faced by the group,” the statement said, the report added.

Fantasia Holdings, Sinic Holdings and China Properties have already defaulted on offshore bonds this month, while China Evergrande Group narrowly averted a default by making a coupon payment on time last week. Evergrande faces another deadline on Friday. Global ratings agencies have already slashed their score on a record 44 Chinese developers this month as liquidity woes mount amid rising maturities, the report said.

Modern Land last Wednesday abandoned a proposal to extend repayment on the bond and the next morning halted trading of its stock and debt securities pending another announcement. The trade suspension remains in place, it said in the latest statement.

A regulatory crackdown on Chinese developers by authorities — who are eager to rein in excessive leverage before it sparks a financial crisis — has closed down funding avenues for developers. Under rules issued last year, companies can enhance borrowings only if their balance sheets meet net gearing, liquidity and other guidelines under the so called “three redlines” rules, the report said.

The clampdown has pushed banks to cut their exposure to the sector, and companies have not tapped the offshore bond market in over a year.

Despite such moves, the missed payments by Evergrande and defaults by smaller rivals have sparked fears of contagion across the $50 trillion Chinese financial system in recent weeks.

ALSO READ: China conducts 1st underwater explosion test

ALSO READ: China draws fire for breaking trade rules

Previous Story

KTR to address Paris Senate

Next Story

Suriya talks on inspiration behind ‘Justice Chandru’

Latest from -Top News

Crackdown in Balochistan Draws Global Outrage

Despite repeated denials from Islamabad, rights watchdogs and political activists say the pattern of abuses reflects a systemic campaign to silence the Baloch voice….reports Asian Lite News Human rights organisations have renewed

‘Killer’ Chants as Munir Visits US Event

Videos of the protest against Munir have surfaced on social media. Overseas Pakistanis staged a protest during the US visit of Pakistan’s Chief of Army Staff, Field Marshal Asim Munir, shouting slogans

G7 Sides with Israel in Escalating Conflict

The leaders said “Iran is the principal source of regional instability and terror.”…reports Asian Lite News Leaders of the G7 nations, meeting at a summit in Canada, issued a joint statement backing

Awami League Slams ‘Fascist’ Yunus

The videos from the protest shared on the party’s social media page showed several party activists marching through the streets of Dhaka in support of Hasina…reports Asian Lite News Hundreds of Awami

Tehran Alert: India Asks Nationals to Evacuate

As the Israel-Iran conflict entered its fifth day, the hostilities between the two nations continued to escalate…reports Asian Lite News India has urged its nationals in Iran and Persons of Indian Origin(PIO)
Go toTop

Don't Miss

China Sees Europe as Key Partner: Xi Jinping

Xi stated that China consistently views its relations with the

Zimbabwean Civil Society Organisations slam Chinese firms

The organizations charged that the Chinese companies were looting Zimbabwean