China's Evergrande Drowns In Liabilities Exceeding $300B
Updated: Sep 3, 2021
On the face of it, China Evergrande Group made progress cutting its debt load in the first half of the year. On closer examination, paying its dues got even harder, Bloomberg News reported.
Photo Insert: Evergrande Group headquarters, Shenzhen, China
The developer’s borrowings, or interest-bearing debt, fell to a five-year low as of June 30, results showed late Tuesday, August 31, 2021.
But its overall liabilities rose to a near-record 1.97 trillion yuan ($305 billion), thanks mainly to swelling bills to suppliers. Cash and cash equivalents plunged to a six-year low.
The Chinese property developer is at ‘a critical point,’ analysts warned, as its liabilities swelled and Beijing appeared reluctant to rescue the beleaguered company. Bonds also tumbled after the property giant warned of default risk.