GZUHY - China Evergrande woes raise worries for real estate finance sectors in China
Looking at the potential repercussions of a China Evergrande (OTCPK:EGRNF) (OTCPK:EGRNY) debt restructuring, credit markets see increased default risks for smaller Chinese real estate developers like Fantasia Holdings Group and Guangzhou R&F Properties (OTCPK:GZUHY), the Wall Street Journal reports. Note that in July, some Hong Kong lenders had halted new lending for the real estate developer's unfinished residential properties in Hong Kong. Those banks include HSBC Holdings (HSBC +0.5%), Bank of China's (OTCPK:BACHF +0.8%) Hong Kong unit, Hang Seng Bank (OTCPK:HSNGY -0.6%), and Bank of East Asia (OTCPK:BKEAY). Industrial and Commercial Bank of China also stopped providing mortgages for Evergrande's unfinished apartments. Besides Evergrande's debt woes, the Chinese economic outlook indicate slowing growth. National home sales by value in August dropped 19.7% Y/Y, its largest decline since April 2020. Home price increases and real-estate investment slowed as construction starts contracted by 3.2% in the January-August period compared with the same period
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China Evergrande woes raise worries for real estate, finance sectors in China