"China's property developers -– and their creditors –- appear to be approaching a reckoning," said analysts at Capital Economics in a note. They warned Evergrande is "close to collapse" with large losses looming for banks, bondholders and home buyers. Total liabilities had swelled to 1.97 trillion yuan (US$305 billion), the embattled group said last week, warning of the risk of default. Evergrande threw itself into mass development, building in-demand apartments across China and capitalising on its rapid wealth accumulation. In 2010, Xu bought the then-embattled Guangzhou football team, renaming it Guangzhou Evergrande and pouring money into world-class players and coaches.

Source: Bangkok Post September 12, 2021 03:22 UTC