China Evergrande Group on the brink of collapse?

China Evergrande Group (“Evergrande”) has appeared in the headlines of world financial news lately. The China property giant is on the brink of collapse.

A case of rapid growth and over-leveraging, here are some of the highlights of its situation:

⭕ $300 billion liabilities – almost half owing to contractors
⭕ Over 1.5 million house buyers have paid down payment for properties still under construction as of December*
⭕ $669 million in coupon payments for bond this year, including $83.5m due towards end September*
⬇️ Share price down 80% this year

“The potential fallout could have far-reaching implications that spill outside China’s borders.”

Who will be impacted?
🏦 Banks
👨‍👨‍👧‍👦 Homebuyers and investors
🛠️ Suppliers
❓ Other parties affected by the above

Evergrande is undergoing debt restructuring.

Read more here.

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