An ad hoc group of creditors of Evergrande’s offshore unit has said it supports the management’s efforts to keep the embattled Chinese developer operational, ahead of a key court decision on Monday when the distressed developer faces the risk of a liquidation order

Major banks may need to set aside US$89 billion next year for bad real estate debt, or 21 per cent of estimated pre-provisions profits, which has lenders weighing lower growth targets and job cuts, bankers say.

If China allows lenders to issue loans to some developers, it ‘would be negative for banks as it would raise concerns about national service risk and credit risk in the medium term’, JPMorgan analysts say.

Zhongzhi Enterprise Group, one of mainland China’s largest shadow banks, has warned investors of an asset shortfall, setting off alarm bells in the trust sector which invests a large portion of investors’ money in real estate projects.

The seizure of the two properties on Black’s Link, The Peak, is another setback for the founder of China Evergrande, which faces a winding-up hearing in Hong Kong on December 4.

In what could be the largest lawsuit by value in the country’s real estate sector, Lujiazui Corp sued Suzhou Steel Group and four government and research organisations, saying 14 sites in Suzhou have worse pollution than was disclosed.

Tycoon Joseph Lau calls press conference to deny he had written wife out of his will and left everything to oldest son.

The property magnate and Chinese Estates founder says high interest rates are forcing businesspeople to recalculate their investments and potential returns. ‘It’s better to hold on to the money now.’

Evergrande has proposed a new debt revamp plan for offshore bondholders, offering to swap their debts into about a 30 per cent equity stake in each of its two Hong Kong-listed subsidiaries, two sources say.

China Evergrande has been given a final reprieve to get its house in order, after a Hong Kong judge adjourned a winding-up hearing against the developer to December 4.

Chinese developer Country Garden Holdings was deemed to be in default on a dollar bond for the first time ever, and the company is now likely headed for what would be one of the nation’s biggest-ever restructurings.

Debt problems that have manifested in Evergrande and Country Garden cases are prompting China’s central bank to step up risk-monitoring of lenders and local government financing vehicles.

Municipalities have been directed to drop a 15 per cent price premium on land sales, which fell 80 per cent in 2022 and 33 per cent this year. The impact on demand ‘might be quite limited’, an analyst says.

Evergrande’s future is up in the air, with founder Hui Ka-yan under arrest for suspected crimes. Still, the developer may survive a foreclosure attempt later this month, a restructuring lawyer at Hogan Lovells says.

Embattled property developer Country Garden has issued a statement rejecting talk, which it said was spread across several social media platforms, that its founder and chairman had both left China.

The troubled Chinese developer is fighting to avert its first ever actual default on an offshore debt as the grace period for a US$15.4 million payment enters its final hours.

Two former Goldman Sachs traders in Hong Kong are raising money to lend to financially strapped borrowers, including the growing number of down-on-their-luck Chinese property tycoons.

The Central Finance Commission has set up offices and begun day-to-day work, part of China’s efforts to guarantee stability in a financial system that is feeling some tremors.

Yeung Kwok-keung’s visit to a Guangdong construction site comes as the sector’s embattled companies and their billionaire bosses strive to show their dedication to delivering housing and clearing debts amid what is seen as heightened government scrutiny.

China is striving to establish a high-quality inclusive financial system over the next five years, although its financial stability is under pressure from the ongoing property crisis triggered by Evergrande and Country Garden.

Is Hui Ka-yan’s sudden ‘arrest’ related to Evergrande’s Chapter 15 filing? Did he attempt to shield his personal assets from onshore creditors, as speculated by some local media? Here’s what some restructuring experts say about the situation.

The debt-stricken property developer has said it is ‘cashflow insolvent’ and that its creditors will get less than 5 per cent of their money back if it is forced into liquidation, a court heard.

Country Garden is stumbling toward a full-blown debt reorganisation with creditors after missing a bond payment and warning of possible default on some of its US$16.5 billion of offshore debt.

A group of offshore creditors of China Evergrande Group has called the debt-stricken developer’s efforts to obtain regulatory approval to issue new securities as a “botched attempt” adding that there was “zero clarity” as to why such a fundraising exercise was disallowed.