Alarm bells ring as China property cancer spreads
Among those developers are China Evergrande, the world’s most indebted property developer, with about US$300 billion ($430 billion) in liabilities, and the company that defaulted on its foreign bonds last year bringing home the scale of the crisis in China’s property sector. Its suppliers want to be held accountable for their loans, which may be problematic given that the group has not yet developed a workable restructuring plan and risks being declared default on its domestic bonds by domestic investors who have, until now, been prepared to extend the grace period. Evergrande has until the end of this month to work out its plans and prevent what would become a landmark default in China. Borrowers for incomplete apartment developments in China refuse to pay their debts, exacerbating the existing crisis in China’s vital property sector. Credit: Bloomberg Its ability to meet that deadline was complicated by the forced resignations of its chief executive and chief financial officer last w