ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
China debt crunch

China Properties defaults on notes worth $226m

Evergrande debt crisis spills into rest of high-yield property sector

Residents walk by a property sales office advertising properties for sale and rent in Beijing on Oct. 5. China's property sector is on the edge of a financial crisis.   © AP

China Properties Group said on Friday it had defaulted on notes worth $226 million as it failed to secure funds by the maturity date, joining a list of property developers in the country that are reeling from a debt crisis.

The case underscores how China Evergrande Group, which is struggling under $305 billion in debt, is impacting the rest of the high-yield sector as liquidity dries up and sales slow.

Earlier this week, Chinese developer Sinic Holdings said it would likely default on bonds worth $250 million.

China Properties said it had failed to secure funds by Oct. 15, the maturity date of the notes, due to a "timing mismatch" and that it would not be able to make repayments until it had sold or refinanced some of its assets.

The Hong Kong-headquartered company said its controlling shareholder, Wong Sai Chung, had assured he would continue to provide support to the firm through the liquidity crisis.

For now, the notes would be delisted from foreign bourses, it added.

(Reuters)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more