The above shows Sunac, ($154 billion in Liabilities) for context BHP’s market cap = $180bn, Greenland ($191bln liabilities) USD denominated bonds down approx 20%.
These are some of the “smaller” developers behind Evergrande who are also demonstrated a liquidity squeeze.
Fantasia Holdings, is in default.
Evergrande is not isolated.
Due to the fiscal policy settings - which have established knowing full well their drawbacks do not allow these property developers access to more debt, hence the liquidity squeeze.
In addition to that, its believed there are 90 million vacant units sitting idle or incomplete.
Who’s going to keep building?
New Home sales in China are down 30% MoM, second hand market is worse, clocking over 40%. Sunac described the market as frozen.
So again, this a very deliberate, purposeful deleveraging campaign which has effectively stopped the music for property developers in China & being executed for the “common good” of its people.
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