Updates of Evergrande Real Estate Group Ltd
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Evergrande has hired reconstruction consultants and warns that its melting pot is “highly competitive” in the downturn as China’s heavily indebted retailer faces protests by homeowners and stockbrokers.
In a statement on the Hong Kong stock exchange, Evergrande revealed that its monthly sales are about to run from June to August, down from Rmb71.6bn ($ 11bn) to Rmb38.1bn.
While September is often the market month for manufacturers, Evergrande, which warned last month about constant risk due to the growing financial crisis, he says “unprofessional reports for journalists” for undermining trust in the company from those who would like to buy goods.
The company has hired Houlihan Lokey and Admiralty Harbor Capital to monitor its performance and “explore all possible options” to alleviate the rising tensions.
From Shenzhen in southern China, Evergrande has debts of approximately Rmb2tn ($ 310bn), which raises concerns that if they fail to repay their debts they could end up in debt. could be at high risk the country’s economy and international markets, where it has borrowed heavily.
Increasingly, the group has joined forces with the Chinese government the driving force against major technical groups, real estate companies and other sectors.
On Monday, the Ministry of Foreign Affairs announced a three-year pilot to implement the district administration. Last year, the government enacted a strong law. “three red lines“Its policy is helping to reduce the growth of development, which China’s banking regulators say is one of the biggest economic risks.
In recent days, Chinese TV stations have been flooded with complaints from shoppers worried that their new homes it could not be completed and to the sellers who bought the real estate property that was sold to support the real estate business in Evergrande.
Officials say hundreds of people have staged protests at Shenzhen’s headquarters in Evergrande and met with supervisors for weeks after the group suspended payments for certain financial items.
Police in riot gear stormed a rally on Friday, removing hundreds of protesters by truck. By Tuesday afternoon, police had demolished the protesters’ home, even though a group of Evergrande donors who had not received any money stayed outside.
An Evergrande executive told the Financial Times that negotiations with stockbrokers were ongoing in a nearby house, with the developer returning within five years. “That’s the best we can offer,” he said.
Other demonstrations have taken place in Evergrande’s offices as well as in China, including Guangzhou, Zhengzhou and Qingdao, according to a press release.
Evergrande relies heavily on customers who pay for offices before it is finalized.
In his remarks, Evergrande also revealed that its two non-profit organizations have not been able to “fulfill their mandate” of approximately Rmb934m on financial resources provided by third parties.
In order to reduce its debt, Evergrande wants to reduce costs and selling goods including the automotive business business segments and support group, all of which are listed in Hong Kong, as well as representative locations in the region.
Shares recorded at Evergrande in Hong Kong dropped to 11% on Tuesday, bringing the total to 80% year-round. Shares of Evergrande New Energy, an electric car company, put up 22%.
On Tuesday, the group’s office in Beijing was reopened. An employee said the company relocated to a location outside the city last month.
Evergrande real estate agents say they are entitled to a 7-9% interest rate, and the company’s failure to repay delays has led to a backlash for those who want money to spend their money.
To reimburse those who sell goods or ask for an early release, Evergrande has provided plans to reimburse or replace accommodation and parking.
The Evergrande crisis has hit the global markets, with its growing debt next year selling for 30 cents a dollar, contributing to a higher yield than high-risk Chinese suppliers.
“Fear and uncertainty are rampant in the marketplace,” said Paul Lukaszewski, head of Asia-Pacific corporate debt at Aberdeen Standard Investments.
Additional reports of Hudson Lockett in Hong Kong