What is the Evergrande Group?
The Evergrande Group or the Evergrande Real Estate Group (previously Hengda Group) is Chinas second-largest property developer by sales. It is based in southern Chinas Guangdong Province , and sells apartments mostly to upper and middle-income dwellers.
What is Evergrande and why is it so dangerous?
Evergrande has an enormous web of contractors and other businesses in the region that are owed money from the developer. In recent weeks contagion fears have intensified as 128 banking institutions and 121 non-banking institutions are exposed to Evergrande.
Is Evergrande out of cash and time?
The company had warned investors that it could default on its debts and ratings agency Fitch had said that default ‘appears probable’ while Moody’s, had said ‘Evergrande is out of cash and time’.
Is Evergrande on the brink of collapse?
The news that Evergrande, the world’s most indebted real estate company, was on the brink of collapse sent global markets tumbling last month. The company had warned investors that it could default on its debts and ratings agency Fitch had said that default ‘appears probable’ while Moody’s, had said ‘Evergrande is out of cash and time’.
Who is Evergrande and what does it owe?
The Chinese property giant owes $300 billion and is on the hook for as many as 1.6 million apartments. It may owe tens of thousands of its employees money, too. At Evergrande’s headquarters in Shenzhen, China, on Wednesday. Employees who say the company pressured them for cash have joined angry home buyers in demanding their money back.
Whats happening to Evergrande?
(And no, its not the ship that got stuck in Egypts Suez Canal -- that was the Ever Given .) Evergrande is a real estate developer in China, and it also has its own soccer team and bottled-water business. Most importantly, after years of heavy borrowing, the company last week said it may default on its debt.
Why did Evergrande ask its employees to lend it money?
When the troubled Chinese property giant Evergrande was starved for cash earlier this year, it turned to its own employees with a strong-arm pitch: Those who wanted to keep their bonuses would have to give Evergrande a short-term loan. Some workers tapped their friends and family for money to lend to the company.
Is there too much time left for Evergrande wealth?
“There isn’t much time left for us,” said Jin Cheng, a 28-year-old employee in the eastern city of Hefei who said he put $62,000 of his own money into Evergrande Wealth, the company’s investment arm, at the request of senior management.