Saturday, August 2, 2025

Latest

Another Property Developer Faces Default as China’s Real Estate Crisis Spirals out of Control

Another day, another default.

Monday was another tough day for Chinese bond markets, as news spread that Evergrande was poised to miss a third offshore bond payment, while several other major property developers revealed that they too, will be unable to make their debt obligations, setting alarms off across financial markets over what appears to be a troubling liquidity contagion.

On Monday, the South China Morning Post reported that real estate developer Sinic Holdings Group does not plan on making a US$250 million interest payment due October 18, warning that a cross-default could ensue on its two other bonds. The company faces approximately US$694 million in outstanding offshore payments according to data compiled by Bloomberg, and has already missed an onshore coupon payment back in September, which sent its stock plummeting by nearly 90%.

Just last week, Fantasia Holdings Group Co. failed to make a $205.7 million interest payment due October 4, and did not repay a separate $108 million loan that was also due the same day. As the contagion spreads across China’s real estate sector, other property developers are desperately attempting to avert additional defaults on their upcoming debt payments. Modern Land Co., a Beijing-based developer that faces about $1.35 billion worth of outstanding debt, has requested a three-month extension on a coupon payment due October 25.

In the meantime, Evergrande— which holds the title of the world’s most indebted property developer, will officially enter default come October 23, after which the 30-day grace period on its first failed bond payment comes to an end. As fears mount over what appears to be an imminent Evergrande collapse, droves of investors have been liquidating their funds into safer assets, making it even more difficult for China’s other property developers to raise liquidity or refinance.

In other words, it looks like things are about to get a lot uglier.


Information for this briefing was found via the SCMP and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Another Gold Deal! Aris Mining Sells Assets To McFarlane

Royal Gold Goes Big | $3.5 Billion Sandstorm Acquisition

Why Gold’s Bull Run May Just Be Getting Started! | Peter Grandich

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Evergrande’s Offshore Bondholders Brace for Default, Fight for Transparency on Assets

As offshore bondholders become more weary of a lack of communication from Evergrande and a...

Saturday, October 9, 2021, 11:17:00 AM

Evergrande Still Faces MAJOR Debt Obligations in Coming Years Despite ‘Resolving’ Thursday’s Interest Payment

Although markets exhaled a sign of relief upon news that Evergrande had come to an...

Thursday, September 23, 2021, 11:09:00 AM

Evergrande’s Major Shareholder Dumps Stake, Pushes Real Estate Developer Closer to Default

Despite narrowly making a series of overdue coupon payments on the eleventh hour, Evergrande’s financial...

Friday, November 26, 2021, 02:58:00 PM

Founder of China’s Evergrande Group Fined $47 Million Yuan for Falsifying $78 Billion Revenue

China Evergrande Group, the embattled developer at the epicenter of China’s real estate turmoil, has...

Wednesday, March 20, 2024, 11:39:00 AM

Tether Denies Holding Commercial Paper Issued by Troubled Real Estate Developer Evergrande

Stablecoin issuer Tether has said it does not hold commercial paper issued by Chinese real...

Saturday, September 18, 2021, 12:58:00 PM