PIAIF - China Property Market Woes Spark Fears Of 2008-Style Global Recession Led By China Slump | Benzinga
Continued troubles in the real estate sector in China are scaring investors in Hong Kong and leading to talks of a potential China property-led global market rout.
Markets in Hong Kong and China were sharply down Monday on news that the mainland’s fourth-largest property developer cancelled a creditor’s meeting to discuss its debt repayments. Hang Seng Index was 1.8% lower at 17,739 after morning trading while China’s CSI 300 Index was off 0.7%.
China Evergrande Group Limited (OTC: EGRNF), the beleaguered Chinese property developer, said Friday that it was cancelling a creditor meeting scheduled early this week. It said that "sales had not been as expected”.
The announcement is the latest in a series of scandals to hit the Chinese financial behemoth. Mid-September, the domestic regulator approved a 50% sale of its insurance business China Evergrande Life into a special purpose vehicle owned by the Chinese state to free up cash. Then last week, staff in the company’s wealth management division were detained by Shenzhen police.
China Evergrande has 778 developments in its stable, making it China’s fourth-largest. Sunac China Holdings Limited and Longfor Group Holdings Limited (OTC: LNGPF) are slightly larger in size by total developments and Country Garden Group Limited (OTC: CTRYF) is China’s number one property developer, with 3,121 developments throughout the mainland.
Shares in China Evergrande were down as much as 25% mid-day while the sector overall was off 6%, the most since December last year. Country Garden was 7% lower. China Aoyuan Group Ltd, which in ...