Shenzen The Chinese property developer Evergrande, which has run into financial difficulties, warns again of liquidity risks due to a decline in its property sales. The country’s second largest real estate developer is in talks with potential investors to sell some of its assets, but has not made any “significant progress,” according to a filing on the Hong Kong Stock Exchange.
The company blames “persistent negative media reports” for the deterioration in investor confidence, which leads to a further decline in sales in September.
Disgruntled investors gathered in front of Evergrande’s headquarters in Shenzhen on Monday to ask for their money back. The company had previously stated it was in “unprecedented trouble” but denied speculation of impending bankruptcy.
About two weeks ago, the over-indebted group itself warned of liquidity and default risks for the first time if it should not succeed in resuming construction, selling holdings and renewing loans.
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In June, Evergrande defaulted on bond interest payments. The lowering of the credit ratings by the rating agencies Moody’s, Fitch and China Chengxin International (CCXI) had led to a sell-off on the bond and stock markets. Investors fear shock waves for the Chinese banking system if Evergrande collapses.
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