This little factoid is one I was unaware of regarding the Evergrande fiasco….

In June, the company admitted it missed payment on a loan. The next month, a Chinese court froze a $20 million bank deposit at the request of one its lenders. At least one creditor, a paint supplier, is reportedly being paid in apartments that won’t be ready until 2024.

According to data compiled by Bloomberg, on the 19th of July, presales at two projects in Hunan were halted. Three days later, Hong Kong banks stopped offering mortgages on any incomplete projects by the company in the city. On August 9, two more projects in Kunming stopped construction due to missed payments, followed by similar halts at projects in Nanjing and Chengdu. Things have snowballed ever since. The company’s stock price has cratered by 90 per cent in the past year, and most of their bonds are in junk status.

It’s noted that it’s unlikely that Beijing would just let it go belly-up, because of the obvious risk of social instability, so other possibilities mentioned are a break-up of the company and an orderly wind-down. An outright bailout is also considered unlikely.

cbc.ca

In any event, it’s quite the mess.