Earth Science News
TRADE WARS
China developer Evergrande posts losses for first half of the year
China developer Evergrande posts losses for first half of the year
by AFP Staff Writers
Beijing (AFP) Aug 27, 2023
Heavily indebted Chinese property giant Evergrande Group on Sunday announced it had suffered fresh losses for the first half of the year.

The developer's January-June losses amounted to 33 billion yuan ($4.53 billion), compared to 66.4 billion yuan in the same period last year, according to a statement published on the Hong Kong Stock Exchange website.

Once China's top developer, Evergrande is drowning in a sea of debt and has become a symbol of the property crisis that continues to send shudders through the world's number two economy.

Its statement on Sunday also announced dwindling liquidity, with just $556 million in cash assets, compared to about $2 billion last year.

The situation is likely to complicate its repayments over the coming months.

Evergrande first defaulted on its bonds in 2021, fanning fears of a possible global contagion.

It estimated its liabilities now stand at almost $328 billion, down from nearly $340 billion at the end of 2022.

In April, Evergrande said it had entered into a restructuring agreement with a group of international creditors, in what could be a breakthrough deal towards easing the developer's massive debt.

The plan offers creditors a choice to swap their debt into new notes issued by the company and equities in two subsidiaries, Evergrande Property Services Group and Evergrande New Energy Vehicle Group.

- Attempts to stabilise sector -

The property sector, which along with construction accounts for about a quarter of China's GDP, is a key pillar of the country's growth.

Housing reforms during the late 1990s unleashed a boom in the real estate sector, spurred by social norms that consider owning property a prerequisite for marriage.

But the massive debt accrued by the industry's biggest players has been perceived by Beijing in recent years as an unacceptable risk for China's financial system and overall economic health.

To reduce the sector's indebtedness, authorities have gradually tightened conditions for developers' access to credit since 2020, and a wave of defaults followed -- notably that of Evergrande.

Over the summer, developers triggered protests and mortgage boycotts from Chinese homebuyers after failing to deliver housing projects.

Beijing has sought to bolster the sector by cutting mortgage rates, slashing red tape and offering more loans to developers.

Fellow Chinese property giant Country Garden now risks defaulting on its bond payments next month, after the company said there were "major uncertainties in the redemption of corporate bonds".

Evergrande shares are due to resume trading on the Hong Kong Stock Exchange on Monday.

They were suspended in March 2022, when the beleaguered company failed to publish its results for 2021.

The annual results for 2021 and 2022 were published last month, and they have also been audited, paving the way for trading to resume.

ehl/lb/tjj

China Evergrande Group

Related Links
Global Trade News

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
TRADE WARS
Markets track Wall St surge after US data, Nvidia results
Hong Kong (AFP) Aug 24, 2023
Equity markets rose again Thursday after soft US and European economic data soothed recent fears that central banks will hike rates further, while tech firms were given a boost by forecast-busting earnings from AI chip titan Nvidia. Traders have spent most of August fretting that the Federal Reserve will be forced to tighten monetary policy further owing to a string of reports pointing to a resilient US economy and jobs market. But news that US factory activity continued to shrink in August whil ... read more

TRADE WARS
Fukushima wastewater not toxic, says IAEA chief

Fukushima operator says released water samples within safe limits

Greek wildfires spur anti-migrant sentiment

Japan releases water from Fukushima nuclear plant, China furious

TRADE WARS
Japan slams China harassment over Fukushima water release

MIT engineers use kirigami to make ultrastrong, lightweight structures

Observation of metal healing itself confirms researcher's prediction

Droplets unite!

TRADE WARS
The swansong of African hydropower?

El Nino and La Nina multi-year events could become more common

Beijing fishmongers worry as Japan begins Fukushima water release

Beijing fishmongers worry as Japan begins Fukushima water release

TRADE WARS
Loss of Antarctic sea ice causes catastrophic breeding failure for Emperor Penguins

Mountaineers urged to delay Mont Blanc climbs amid Alps heatwave

UC Irvine scientists say deepening Arctic snowpack drives greenhouse gas emissions

Hot spell pushes 'zero-degree' line to record height in Switzerland

TRADE WARS
French grape-pickers wilt as 'heat dome' temperatures top 40C

Hong Kong to curb some Japan food imports over Fukushima water release

Three charged over theft of lambs from farm on UK royal estate

High heat can serve up food insecurity within days

TRADE WARS
Hundreds flee floods as super typhoon brushes past Philippines

Around 100,000 people evacuated due to floods in Pakistan

North Korea's Kim slams 'irresponsible' premier over flood damage

California cleans up after record rainfall from Hilary

TRADE WARS
African media urges Niger to respect press freedom; French ambassador 48 hours to leave

Over four million displaced in Ethiopia: IOM

Sudan army chief makes first foray outside HQ in months of war

African Union suspends Niger over coup as 12 troops die in new attack

TRADE WARS
New ancient ape from Turkiye challenges the story of human origins

Just 5000 steps can save your life

A climate-orchestrated early human love story

Indigenous groups call for bold steps at Amazon summit

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2026 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.