China: New ‘earthquake’ in real estate – Another company can not repay loan

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The company real estateSinic in China warned how will not be able to repay a loan “in the absence of liquidity”, at a time when the real estate sector is in turmoil difficulties of the Evergrande, which is on the verge of bankruptcy.

Sinic is the last of the Chinese real estate companies to report serious financial difficulties and its announcement comes shortly after the announcement of the resignation, yesterday, Monday (11/10), of two directors of another company in the sector, Fantasia, which is also having difficulties. to repay its debts.

Sinic announced that it is unable to repay a loan $ 250 million (EUR 216 million), which expires on Monday 18 October. Sinic “predicts it will not have enough liquidity” to make the payment, the company said in a statement today. The company will also have to repay another loan $ 250 million in January and thereafter 210 million next June.

According to APE-MPE, Sinic was on the front pages of the press last month, when her stock had lost 87% of its value on the Hong Kong Stock Exchange, after the problems of the indebted giant real estate company Evergrande. The case caused the head of Sinic to lose more than a billion dollars, according to Forbes. And the trading of its shares has since been suspended on the Hong Kong Stock Exchange.

These difficulties bring to light concerns in China over the real estate sector, which is crucial to the development of the world’s second largest economy.

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