SHENZHEN. The situation on the Chinese real estate market remains critical: on Friday, the real estate developer Kaisa announced that it had failed in an attempt to postpone a payment due next week.
Kaisa is one of several companies in the Chinese real estate market that is in trouble. In terms of sales, Kaisa is only number 27 – but over-indebtedness is one of the highest in the industry.
The company has to pay interest of 354 million euros by Tuesday. Kaisa had proposed a debt rescheduling to his creditors in order to extend the repayment period. However, the necessary approval of 95 percent was not achieved.
The greatest threat to the real estate market comes from real estate giant Evergrande, which after years of credit-financed expansion is sitting on a mountain of debt of 260 billion euros and also has great difficulties servicing its loans.
Source: Nachrichten
