Chinese Evergrande Group
A new payment delay has been revealed by the Chinese Evergrande Group, which is a major Chinese real estate developer and has huge debt. There are concerns in the market that the company’s financial deterioration will be a systemic risk.
Pipe maker Yongtaka has disclosed to the Shenzhen Stock Exchange that there are 478 million yuan ($ 74 million) of commercial bills issued by Evergrande Group, of which 195 million yuan is due. It was revealed that it was past. Nagataka has suspended the delivery of products since May and said it may sue Evergrande Group.
No comment from the Evergrande Group has been obtained. The company has already been sued for late payments and some cases have stopped construction work. On the 20th, it announced that it would do its utmost to solve the debt problem and maintain the stability of the real estate market.
According to rating agency S & P Global, bills and accounts payable for customers due in the next 12 months will exceed 240 billion yuan ($ 37 billion).
