China Evergrande 3333

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China Evergrande Gets $4.6 Billion Lifeline From State Firms
https://m.youtube.com/watch?v=Hg6LRpt4v9Y

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Evergrande to delist soccer business as coronavirus widens loss
https://www.theedgesingapore.com/news/c ... idens-loss

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Evergrande Stock Sinks Below Liquidation Level
https://www.zerohedge.com/markets/everg ... tion-level

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Evergrande's Liquidity Crisis Becomes Ever Grander
https://www.zerohedge.com/markets/everg ... er-grander

[winston]

Evergrande's woe's.

by Andrew Wong

As I mentioned last week, bond defaults by Chinese corporates hit a record 62.59 billion yuan (HK$75.04 billion) in the first half of the 2021 with state-owned enterprises accounting for more than half of the defaults at 36.65 billion yuan.

This probably indicates that the central government is no longer willing to pick up the slack and guarantee the debts of state-owned enterprises.

But in Evergrande's case, the government will not step in to rescue the indebted developer unless its debts pose a systemic risk to mainland banks.

However, banks in China have very strict loan programs in place and Evergrande must have enough collateral - including assets such as land and property - to be able to borrow large sums from them.

So if Evergrande is really strapped for funds and unable to repay its loans, the banks would just take over these assets, and it would not balloon into a huge crisis nor cause any systemic risk.

Therefore, the central government will not be inclined to take any measures to resolve Evergrande's debt woes, but investors who hold bonds issued by the developer will be one who get their fingers burnt.

They are already bracing for heavy losses and will be reassessing the risk factor of investing in Chinese corporate bonds.

This will not only make it harder for Evergrande to reissue bonds and resolve its debt problems, but also affect the chances of several Chinese companies looking to raise funds.

Source: The Standard

https://www.thestandard.com.hk/section- ... ure-on-HSI

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Evergrande Rating Cut Deeper Into Junk by S&P
https://www.youtube.com/watch?v=JaigNy8-Dm0

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China's "Lehman Moment" Approaching: Evergrande Warns Of Default Risk From Cash Crunch
https://www.zerohedge.com/markets/china ... ash-crunch

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Evergrande Bonds Halted Amid Liquidation Panic As Contagion Spreads To Other Chinese Junk
https://www.zerohedge.com/markets/dooms ... r-eligible

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「恆大財富」暴雷 深圳總部大批員工維權 ｜#新唐人新聞
https://m.youtube.com/watch?v=7KvARxH9v3U

[winston]

CHINA EVERGRANDE GROUP (3333 HK)

Recommendation : SELL
Fair Value : SGD 2.50
NO RESPITE.

Expected significant decline in contracted sales for Sep
No guarantee on meeting its financial obligation
Engaged two financial advisors to assess its capital structure and to find feasible solutions

Although China Evergrande’s (3333 HK; Evergrande) new business initiatives are aimed at diversifying its income streams away from the traditional property development business, we expect continued drag on its profitability in the near-term.

Evergrande’s target at the start of 2021 was to achieve contracted sales of RMB750b, which would represent a slight increase from 2020 level.

However, tight liquidity and credit conditions are expected to pressure its sales in 2H21.

Management has earmarked more concrete plans to deleverage further. It managed to reduce its net gearing ratio from 153% (as at 31 Dec 2020) to 100% (end-1H21), but Evergrande warned in its 1H21 results announcement that liquidity issues had resulted in delays in payments to suppliers and suspension of work on certain projects.

It also said that there are risks of defaults on borrowings and potential cases of litigation outside its normal course of business.

Source: OCBC