(Hong Kong / Shanghai Comprehensive News) In less than two years after the debt crisis of Evergrande Group, a larger Chinese real estate developer is on the edge of debt explosion.Private real estate companies Country Garden failed to pay two US dollar debt coupons that should be paid on time. The company admits that it has encountered "the biggest difficulty since its establishment."
First Financial Network quoted institutions, saying that Country Garden has been preparing for debt reorganization and hired CICC as a financial adviser, and it is expected to start related procedures in the near future.
Comprehensive Bloomberg and Reuters reported that Country Garden issued an announcement on the Hong Kong Stock Exchange on Thursday (August 10). It is expected that the company will have 45 billion yuan (RMB, the same below, $ 8.3 billion) to 55 billion in the first half of this year.Yuan's net loss.The announcement states that the cause of losses is mainly due to the downward sales of the real estate industry, the decline in business for business, the increase in property projects, and the increase in the expected net exchange loss caused by foreign exchange fluctuations.
In the first half of last year, Country Garden recorded net profit of 1.91 billion yuan.
Before the profit warning was released, the market's concerns about the liquidity of the company have continued to intensify.Country Garden's failure to pay two US dollars of US dollar debt tickets with a total of US $ 22.5 million (S $ 30.36 million) on August 7, which is worried that the company will become a breach of contract after Evergrande.
Cripher pay close attention to how Country Garden will be the US dollar debt redemption before the expiration of the 30 -day width period. It is believed that the potential options include the practice of imitating Evergrande's founder Xu Jiayin.Or reorganize.
Nickname "The First Real Estate Enterprise of the Universe" Country Garden's USD $ 9.9 billion
Country Garden, which is known as the "first housing company in the universe", has ranked first in the industry for many years. Last year, sales reached 464.3 billion yuan. The company fell into a financial difficulties and further exacerbated investors' concerns about Chinese housing companies.
Country Garden's bonds and stocks have fallen sharply this week. As of Friday (August 11), Country Garden Hong Kong stocks closed at HK $ 0.98 (S $ 0.16).The stock has fallen more than 65%this year, and it has performed the worst among the Hong Kong Hang Seng Index ingredients.
Rating agency Moody's Thursday reduced the corporate family rating of Country Garden from B1 to CAA1. The reason was that the company failed to repay the bonds on time, and the liquidity and re -financing risk intensified.
Bloomberg's compilation data also shows that among Chinese large -scale housing companies, Country Garden has the largest non -dollar US dollar bond pool, excluding the breach of contract, and the US dollar bonds are about 9.9 billion U.S. dollars.
Bloomberg Intelligence Analyst Kong Lingyi said in a report on Wednesday (August 9) that the number of Country Garden under construction is four times that of Evergrande, and any breach of contract will exceed Evergrande on the Chinese real estate market.The market emotions have a profound impact, and may significantly weaken the confidence of buyers' confidence in private developers with solvency.
However, Chinese media and Chinese entrepreneurs said that from the perspective of the industry, although they are all trillion -scale housing companies, Country Garden and Evergrande are not the same. From the perspective of asset -liabilities, EvergrandeThe scale of debt is much higher than Country Garden.
In addition, the report also quoted Li Yujia, chief researcher at the Housing Policy Research Center of the Guangdong Provincial Urban Planning Institute, said that Country Garden has no irrational diversified operation, no complicated capital operations in Evergrande, many good signals in the real estate market recently, also in many good signals, alsoGive Country Garden's buffer cycle that was different from Evergrande at that time.
Evergrande issued a report that it has not debt
As the Chinese government tried to revive the real estate market in trouble, the former Chinese real estate giant Evergrande Real Estate issued a report on Thursday night that the company's total liabilities were 1833.8 trillion yuan, and total assets were 146.86 trillion yuan.Following the three companies of Evergrande, Evergrande Automobile and Evergrande Property, the fourth Evergrande company has fallen into debt.
