China Evergrande, once one of the country's biggest property developers, has been caught up in Beijing's debt crisis over the past few years.
The Wall Street Journal Evergrande's foreign creditors failed to reach an 11th-hour deal on restructuring this weekend, meaning imminent liquidation for the real estate developer.
Evergrande, the world's most indebted property developer, is set to default in 2021 and has announced an overseas debt restructuring plan. In the month of March Last year.
Policymakers in China are struggling to prevent a credit crunch in a stagnant property sector.
Last week, the People's Bank of China and the Ministry of Finance announced measures to help increase liquidity available to property developers.
The measures, valid until the end of the year, will help ease a lingering cash crunch for Chinese developers after Beijing cracked down on the sector to address rising debt levels in real estate.
According to Alexander Cousley, APAC investment strategist at Russell Investments, the property sector in China remains challenging on the back of the Evergrande news.
“I think the actions have to be very targeted and very strong,” Chowsley said on CNBC's “Street Science Asia.”
Evergrande's crisis has sparked contagion fears that China's property sector woes could spread to other parts of the world's second-largest economy.
Country Garden, one of China's biggest developers, is struggling to service its own debt. However, the developer reportedly said last month that it could avoid default on its yuan-denominated bonds.
This is growing news. Check back for updates.
