Beijing: Behemot Real Estate China Evergrande on Thursday default in its debt, said Fitch Ranking Agency, which quoted a developer failure that was hit by a crisis to pay more than $ 1.2 billion in bond payments.
The default is the first property imperial because it becomes mired in a debt crisis that has shaken investors who are afraid of broader transmission.
The much smaller Chinese property office, Kaisa, also failed in $ 400 million bonds on Thursday, Fitch said.
The following is the time line of the increase in Evergrande to become one of the biggest developers in China, being one of the worst debtors and, in the end, default: – 1996: Dreams begin – Steel-factory worker Xu Jiayin starts Evergrande, targeting millions of middle classes, targeting China Climb to the property ladder across the country that is truly urbanized.
– 2009-10: Starting expansion – After going public in 2009, Evergrande took control of Guangzhou China Super League club, changed the name Guangzhou Evergrande, and spent billions of dollars on foreign players, taking him to win the succession of the title.
The company also moved to the business of milk, grains and oil and then tried to build an electric car kicking the spread of debt grilled shopping.
– 2017: The richest man in Asia – Xu became the richest person in Asia with a net worth of $ 43 billion.
– 2018: The central bank raises the red flag – the first signs of problems arise when the Chinese central bank adds Evergrande to a list of strongly indebted conglomerates to watch, marking that the potential collapse can cause systemic risk.
– August 2020: ‘Three Red Lines’ – Regulators announce the lid for three different debt ratios in the scheme dubbed “three red lines”, which tightens loans to the real estate sector.
Evergrande sells 28 percent of the Property Management Unit for $ 3 billion and starts the demolition property with a discount that is getting steeper.
– June 2021: Supervision of Home Deposits – As part of hard action in the property sector, the local government sets the maximum limit on deposits, and accommodates and releases funds to developers in batches after checking project progress.
– August 2021: Battle of Courts – Advertisers demand the company for unpaid contributions, the first in a series of cases submitted by nerve subcontractors.
Working at several construction sites stopped.
Global ranking companies including Fitch, Moody’s and S & P lower the prospect of Evergrande to negative, making it more difficult for troubled companies to borrow money.
– September 2021: Public protests – Because fear of increasing future, Evergrande said it was under “extraordinary pressure” and may not be able to fulfill its obligations.
It warns that negative media coverage and rumors have caused the confidence and sales of property that fall during the September sales period which is usually buoyant.
Public protests erupted outside the company’s headquarters in Shenzhen and other locations in China, with investors and house buyers who were angry demanding payment.
– October 2021: Stocks Plunge – Evergrande suspended trading on the Hong Kong Stock Exchange on October 4 Waiting for Announcement on “Big Transactions”.
The company has missed several payments, with a 30-day grace period on the offshore note due at the end of October.
The Chinese central bank said mid-October risk for the wider financial sector of the Evergrande crisis “controlled”, in an effort to calm fear of financial transmission.
Evergrande SHARE The trading resume on October 21, dropped more than 10 percent during opening hours after the company said the $ 2.58 billion deal to sell the main shares in the arm of property services had fallen.
– December 2021: ‘Demolition Controlled’ – The local government in Guandong where the company is headquartered, the chairman of the company XU, because it announced it sent “working groups” to the company.
Analyst said this moment signaled the formal start of the giant debt restructuring process that would take years.
Shehzad Qazi, the implementing director of the China Beige Book data analysis company, notifies AFP restructuring will “finally become a ‘demolition-controlled'” bid by the Chinese government to let Evergrande fail, while trying to contain the impact of his death.
On Thursday, the Fitch Ratings agency stated the company by default.