Evergrande China’s major real estate organization that owns 1300 projects in more than 280 cities and is also indulged in various businesses like mineral water and food companies, theme park, soccer club, electric vehicles, and internet and media production unit is facing financial crises in the country.
The company has $300 billion in liabilities and links to myriad banks. Evergrande can disrupt the whole financial system and the major economy of China.
China’s “highly distressed” real estate companies are at risk of collapse as the country’s highly indebted developer Evergrande is on the brink of default, warns Alliance Bernstein’s, Jenny Zeng.
“In the offshore dollar market, there is a considerable large portion of developers (who) are implied to be highly distressed,” Zeng said. These developers “can’t survive much longer” if the refinancing channel remains shut for a prolonged period, she added.