‘Evergrande’, the giant of the Chinese real estate sector, is on the verge of bankruptcy as the company is indebted under the enormous amount of $300bn.
The news of possible bankruptcy is sending shockwaves around the globe as the implications of bankruptcy transcend beyond the borders of China.
According to the experts, the financial situation of the Evergrande has emerged as a test for the Chinese financial system as the real estate giant is facing difficulties in managing its cash flows.
Meanwhile, banks like HSBC and Standard Chartered in Hong Kong have declined the request for debt servicing owing to the deteriorating financial situation of the real estate company.
The impact of bankruptcy will trickle down to the various stakeholders, including banks, suppliers, homebuyers, and investors.
The company has 1300 real estate projects in China and is present in 280 cities of China. Furthermore, the property service management arm of the company is involved in more than 2800 projects in 310 cities of the country.
For news and blogs, visit Graana.com.
