More profound issues beyond the liquidity crisis of property developers include Chinese residents’ impaired confidence in the housing market and the slowing home sales dragging economic growth.
Auditor resignations plus delayed financial results are bad news for Hong Kong-listed developers.
Despite Evergrande's woes, Allianz is still bullish on Chinese property and infrastructure, although it has slowed down its investment process.
Evergrande admits it may not have enough capital to repay its debt.
Members of German market information provider, DMSA Deutsche Markt Screening Agentur say Evergrande has defaulted; Analysts are split over whether the market is approaching stagflation or pointing to a healthy recovery; Low hedge fund returns and high management fees have seen pension fund allocations fall but CPPIB is keeping the faith; and more.
German firm launches bankruptcy proceedings against Evergrande.
China continues to drive growth within its debt market, in spite of the negative image conveyed by property developer, Evergrande Group.
A recent survey from AsianInvestor’s Asset Owner Insights showed that China is among the top five destinations for Asian asset owners’ alternative investments in the next six to 12 months.
Evergrande's liquidity problems and the pressure on rivals Kaisa Group and Fantasia to make debt repayments point to how refinancing in the property development sector will only become more difficult.
Evergrande not the first debt debacle in China, but its $305 billion debt, if unpaid, will have a ripple effect on the economy; ESG-friendly crypto products becoming hot commodities for institutional investors; GIC sees no systemic risk in Evergrande crisis, but Soros Fund presses pause on China; Which assets will perform under stagflation?; Family offices taking ESG into their own hands as regulators play catch up; and more.
Mark Delaney said investors will find it hard to disengage from China, despite concerns about the second-biggest economy in the world.
The Evergrande crisis and government clampdowns has cast a pall over China investment. While one fund is putting investment on hold, another says it's staying the course.