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Following Evergrande, Modern Land Fails to Pay Bonds

Jakarta, CNN Indonesia —

Modern Land, developer property China, having trouble failed to pay letter debt debt. This adds to market concerns about the effects of the crisis debt that previously happened to China Evergrande Group.

Quotes Reuters, Tuesday (26/10), China’s state planner will meet with property companies that carry large debts denominated in dollars in the future. The government plans to take stock of the total issuance volume amid growing concerns about liquidity.

Modern Land’s management said it had not paid principal and interest on the issuance of debt securities due to liquidity problems. The notes matured on Monday.

Modern Land follows a default that previously also occurred at Fantasia Holdings Group in early October 2021. This situation adds to concerns in international debt markets already reeling from Evergrande.

One of the investors said that one by one the developers had failed to pay their debt securities. This situation has made China’s property stocks slump in recent times.

China’s CSI 300 Real Estate Index fell 2.6 percent and the Hang Seng Mainland Property Index fell 5 percent.

A number of parties project that more property companies will default in the future. This will burden the property sector.

Chinese Estates Holdings Ltd is projecting to post a loss of HK$288.37 million in 2021.

Meanwhile, China Evergrande Group’s electric vehicle unit rose 5.8 percent in early trading today. The company previously said it would prioritize growth in its electric vehicle business, while China Evergrande’s shares fell 6 percent.

[Gambas:Video CNN]

(aud / sfr)


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