The great promises continue to be confirmed for the most dedicated real estate company in the world, the Chinese Evergrande. The rating agency Fitch lowered its credit rating in this fifth-feira and declared partial suspension of two payments for presuming that the Chinese giant officially does not comply with the payment previously agreed with its dollar creators. This score, penultimate on the scale of the United States classification agency, is given to the issuers of divida that do not meet their obligations, but do not stop operating despite the bankruptcy or liquidation process.
The real estate group founded by Xu Jiayin in 1996 faced this second fair or the end of a 30-day grace period to honor the jury payment of a foreign title of 82.5 million dollars (462 million reais), which expired on November 6. To Fitch guarantor that, after trying, without success, to contact Evergrande executives to confirm that the aforementioned payment was made, and considering that our company is not the creators “we will make any announcement about a refund”, we will presume that or Developer does not fulfill his obligations.
Embora nem a company nem the Chinese authorities tenham corroborated the news, on the sixth fair passed to a company located in Cantão notified that it had received an action from creditors not worth 260 thousand dollars (1.4 billion reais) and that “no there was a guarantee that the group had sufficient funds to meet its financial obligations”. In second-feira, suspecting that the company would formally go into default fez with its shares declining 20% on the Hong Kong Stock Exchange, where it accumulated a balance of 87% earlier this year.
Fitch also alludes to the uncertainty about the company’s plans to negotiate with its creators to restructure the foreign division, once “there is no information in this respect”. It was confirmed that the Cantonese authorities will meet over the weekend with Xu Jiayin and agree to create a risk control group of which, in addition to the founder and president of the real estate company, state-owned companies and financial institutions participate.
This week would be the first default of a Chinese corporation, which since September has been valuing each installment for the payment of juries, on many occasions reimbursing its creditors at the last moment and after the moratoriums contemplated. A Bloomberg estimates the division of Evergrande in foreign securities at up to 19.2 billion dollars (107 billion reais) and several analysts fear that this first share will be mild to cross-insolvency, in that a single share of credit may be enough for others creditors collect serious loans.
Evergrande accumulates total liabilities of 300 billion dollars (1.68 billion reais), and on the sixth fair last year it announced a restructuring of the paper in the hands of foreign creators. Since August, analysts who follow the sector day by day fear that carelessness will generate a major crisis in the real estate market of the Asian giant, causing, in turn, the classic domino effect in the national and world financial system.
No entanto, or chef of the Chinese central bank, Yi Gang, returned to guarantee in this fifth-feira that the duvid crescents of Evergrande will not contaminate the rest of the economy. In a video speech broadcast at a forum in Hong Kong, Yi stated that the group’s problems will be dealt with “under the rules of the market” and that “the rights of its shareholders and creators will be fully respected based on their legal seniority.” In the second half of the year, the issuing institute announced that it would invest more than 1.04 trilhão reais in the economy, or that many would interpret as an attempt to contain the recession in the real estate sector, despite the Chinese Government not having given any indication of a redemption .
Evergrande became the main construction company in China and its founder boasted in 2017 that he was the richest man in the most populous nation on the planet. However, since the Xi Jinping government approved a series of restrictions to control the level of division of the sector last year, the group faced a serious liquidity crisis. The company’s problems were spread to other real estate companies, and the credit classification of its main rival, or Kaisa Group, was also downgraded for partial inadmissibility in this fifth-feira by Fitch’s own.