Evergrande claims to have resumed work on more than ten projects
Beijing, October 24 (EFE) .- Chinese real estate giant Evergrande said on Sunday that it had resumed work on more than 10 projects, shortly after local press pointed out that the company had paid interest on a fair offshore bond the day before officially in default.
The group reported today via the Wechat social network that some projects in cities such as southern Shenzhen have entered “the interior decoration phase to be delivered” and that the group is finishing construction of other buildings.
Evergrande, the paradigm of the Asian country’s policy of openness since the 1970s, has total liabilities of more than $ 300,000 million, of which $ 37,000 correspond to loans to be repaid before the end of the first half of 2022.
China’s real estate industry began to overheat in the late 1990s, when regulators at the time reached out to developers keen to profit from the Chinese brick boom.
Restrictions on capital outflows and volatile local stock markets have made real estate one of China’s favorite investment vehicles, in part because there is still no national property tax: according to Moody’s Analytics, homes account for nearly 60% of Chinese household equity and above. more than 75% of their debts.
On the sidelines, the authorities have tried in recent years to regulate the sector to control its excessive expansion, forcing companies to reduce their liabilities and offer ever larger discounts to maintain liquidity.
Some experts estimate that the direct and indirect weight of the real estate and construction sectors reaches between 20 and 30% of the national GDP.
It is also believed that between 13% and 22% of townhouses in the country are empty, especially in small towns, in some of them, where authorities have already started to set limits on the price of apartments that can decrease to “maintain the stability” of the market.
(c) EFE Agency
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