Business & Investment

Car units will be out of stock.Scraplist: Evergrande Update

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(Bloomberg) — Evergrande Group’s electric vehicle sector has abandoned its stock listing plans amid alleged “serious lack of funding” and liquidity of the world’s most debt-ridden real estate developers to the business empire Raised sexual concerns.

The unit’s stake, China Evergrande New Energy Vehicle Group Ltd., held back volatility trading losses after a 26% plunge. Evergrande’s share price rose 6.4%, but by 2022 the 8.25% dollar bond fell, according to Bloomberg prices.


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Financial markets will continue to scrutinize the development of Evergrande’s debt crisis this week, especially whether Beijing will intervene to prevent the chaotic collapse of the company. Tens of thousands of Chinese households are at risk after Evergrande missed payments for investment funds sold through Shadowbank, which has invested billions of dollars in construction projects.

The interest rates on Evergrande dollar bonds this month and next month are as follows:

Evergrande impact on manageable builders: Fitch (9:30 am Hong Kong)

Fitch Ratings said in a statement that the impact of Evergrande’s credit event on rated Chinese construction issuers is manageable due to its limited exposure to developers.


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DBS CEO does not consider Evergrande Woes as systemic risk (9:12 am HK)

DBS Group Holdings Ltd. has not been exposed to Evergrande and does not see the developer crisis as a systemic risk to the local banking industry, its CEO said Monday.

“I don’t think many Asian banks have a lot of exposure,” Piyush Gupta said in an interview with Bloomberg Television. “I don’t think it will destroy the Asian banking industry.”

Sunac unit requests policy support (8:57 am HK)

Sunac China Holdings Ltd. says strengthening housing measures is crushing market sentiment as a sign of increasing stress among developers and is seeking help from local governments.

A Hong Kong-listed real estate company has pleaed Shaoxing after housing regulations in Shaoxing have hit sales in one of its projects, according to a letter from a subsidiary Bloomberg saw. The company said in a statement that the market was almost frozen. “We are facing great pressure.”


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The Sunac Group as a whole “is facing major hurdles and difficulties in terms of cash flow and liquidity,” he said. Sunac’s dollar bond fell on Friday after the letter was circulated among credit traders.

Evergrande fallout spreads to wealthy investors (8:24 am HK)

Tens of thousands of Chinese households run the risk of being sucked into Evergrande’s spectacular elucidation after developers miss payments for funds sold through non-bank lenders.

According to people familiar with the matter, some of these lenders, known as trusts, are already in their pockets to repay wealthy investors on behalf of Evergrande. Others are negotiating an extension of payment with Evergrande, people said, asking them not to reveal their identities discussing private matters. It is not clear how much money is delinquent and there is no evidence that the trust is passing late payments to customers who have purchased Evergrande-related fixed income products.


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Evergrande NEV Ends Proposed Shanghai Starboard List

According to a submission to the Hong Kong Stock Exchange, Evergrande’s electric vehicle division will not proceed with the issuance of the original shares proposed by the Shanghai Stock Exchange’s Science and Technology Innovation Commission.

The company said late Friday that it “is facing a serious shortage of funds” and “has stopped paying some of its operating costs and some suppliers have stopped supplying to the project.” The company said it could not guarantee that it would be able to meet its financial obligations as it continues to look for strategic investors.

These funds have Evergrande’s distressed debt

In the credit market, which is in great trouble due to lack of juicy yields, Evergrande’s worries are drawing the attention of US investment funds looking for new bets.

Funds such as Boaz Weinstein’s Saba Capital Management and Ruben Cricksburg’s Redwood Capital Management have begun to establish positions in company bonds, while European banks have limited exposure to problematic developers. I assured the investor that I was doing it. Other well-known credit investors contacted the company before recent problems arose, and some investors chose to retain most of their position. This list does not give a comprehensive or real-time overview of the debtor.

© 2021 Bloomberg LP


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    Car units will be out of stock.Scraplist: Evergrande Update Car units will be out of stock.Scraplist: Evergrande Update

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