Chinese cities are seizing Evergrande presales to curb misuse of funds

Updates of Evergrande Real Estate Group

At least two Chinese governments have also banned sales of goods from Evergrande’s goods, although Beijing has remained silent on the economic crisis of the world’s largest debtors and its creditors have paid off large debts.

In letters released Wednesday and reviewed by the Financial Times, the Nansha District House as well as rural and suburban construction sites in southern Guangzhou called on the Evergrande partner company to remove sales revenue from the Sunshine Peninsula, a permanent residence, to become a state- A well-kept story that “the interest of home buyers can be protected and the work goes on”.

A housing office in Zhuhai, a city south of Macau, has asked for an Evergrande apartment this month to transfer funds to the state account, according to sources.

The move reflects an increasing effort to alleviate Evergrande’s debt crisis, which he shook global financial markets last week and have sparked protests from donors and moneylenders, who fear they will not be able to recover in the event of a mistake. The producer struggled to get a loan for Beijing struggle by increasing the economic share between the spread and the housing epidemic.

More and more fears have spread after the investors in the Evergrande land deal not receiving interest before the last time he checked last week.

Evergrande, who did not say anything about the $ 83.5m coupon, has a 30-day deadline.

Eight other countries have been demanding since August that Evergrande raise funds for the sale of condoms while the money maker suspended many jobs, according to Caixin, a Chinese financial magazine.

“It is customary for Chinese manufacturers to share the proceeds of a sale for other purposes, from repayment to property,” said Bo Zhuang, a Singapore economist at Loomis Sayles, a commodity manager. “That’s not the other way around,” he added.

Evergrande did not respond to a request for comment on Sunday.

The delay in the process and the suspension of work blocked the prospect of what could become China the biggest corporate restructuring. Evergrande has a total debt of Rmb1.97tn ($ 305bn), plus $ 20bn of total debt in offshore markets.

As of earlier this month, progress has halted hundreds of Evergrande jobs taking place in China, many of which were sold outright, according to people living near the company. The suspension has caused a lot of complaints online as well public demonstrations and anxious home buyers and stockbrokers.

“I have spent all my money on the house,” said Zhu, a Guangzhou resident who bought a two-bedroom house on the Sunshine Peninsula for Rmb2.1m ($ 325,000). “My life would be ruined if the project was not completed.”

Zhu added that his payments for the house were not reflected in the account created for the project. “I don’t know where the money went,” he said.

Beijing has made the completion of the project a key step in tackling the Evergrande crisis, expressing concern to regulators that dissatisfaction with the company could undermine stability, a major concern for Chinese leadership.

This has prompted local governments to set aside funds that the seller initiates to control them they would not go anywhere.

“There is no way our headquarters can transfer the money as it is in a state account,” said a Sunshine Peninsula official, who is expected to resume construction following a five-month suspension.

But the extent to which the government will contribute to the establishment of jobs that were suspended when the business had already been reformed remains an open question.

The financial crisis has worsened in a growing number of cases: in Friday’s lawsuit, Evergrande New Energy, the automotive regulator, warned it was facing a “severe financial crisis” and would be forced to suspend jobs and possibly pay workers without “excessive injections”.

An official in Evergrande also said local governments also provide funding to promote policies, such as monitoring market sales on items that do not meet distribution requirements, to support Evergrande’s financial management.

The developer is facing deadlines in the coming days, plus a $ 45m payout Wednesday on a maturing bond in 2024.

“The idea is to use any financial instruments to help us sell faster on existing laws,” the official said.

However, these measures will not completely eliminate the costs required to complete the project, he added.

“We don’t have enough money to complete all the work on time. We need some outside help. ”

Additional reports of Edward White in Seoul

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