China's new home sales, existing home sales, and land sales are all plummeting this month as government measures to curb prices bite.
Officials from Beijing reportedly told property tycoons in Hong Kong to do more to ease the city’s chronic housing shortage. This has amplified the real estate crisis caused by Evergrande's debt woes. It has also hit China's demand for steel.
Bank loans to developers are usually heavily collateralised, indicating they should be able to recover their full value after the collateral is sold, says research firm Trivium China
Evergrande says it has appointed two companies as joint financial advisers, in the clearest indication yet it is looking at restructuring options amid the scramble to repay its enormous debts; regulators are also said to be preparing a team to assess the group's debts
China analyst Lu Ting warns of loan and bond defaults, and even stock market chaos, if the property industry plunges into crisis because of Beijing's determination to slash debt levels in the sector
Evergrande Chairman Hui Ka Yan sought to reassure investors in a company forum after a litany of news reports this week on the company's financial problems.
The Hang Seng Tech Index fell 1.9% and China Evergrande Group plunged almost 7.5% after warning first-half profits may fall as much as 39%.
Investors are too focused on China's regulatory crackdown and risk ignoring property curbs that are the `elephant in the room,' says Chief China Economist Lu Ting.