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China-Japan-Koreas
Another Chinese Real Estate company may be insolvent soon
2021-10-06
This is where we point and laugh.
[NewsLax] According to Nikkei Asia sources, Fantasi Holdings Group was unable to buy back $205.7 million of corporate bonds that matured on October 4. At the same time, this Chinese real estate group also failed to repay a short-term loan of 700 million yuan ($108.56 million).

According to the bond offering prospectus, Fantasia has a 30-day grace period to arrange to buy back the bonds, to pay the bondholders or else it will be declared insolvent.

Reportedly, Fantasia Group, founded by the niece of former Vice President of China, Zeng Qinghong, has $762 million in international bond debt due this year and an additional $1.15 billion. worth of bonds maturing in 2022, not to mention 6.4 billion yuan of domestic bonds.

On October 4, credit rating agency Fitch Ratings downgraded Fantasia's rating to "CCC". Previously, S&P shortened the score to "CCC" from "B" on September 29. Moody's also cut the rating to "B3" last month.
Posted by:Lord Garth

#8  But, but, but wat will we do when the cheap Made in China stuff stops coming? We really are DOOMED !
Posted by: Besoeker   2021-10-06 17:14  

#7  China has been patching over its issues with foreign currency for a long time. They are still finding suckers to sink their dollers and euros into their country and they won't pay shit back.

The second external currency dries up, China is done. I don't expect that to happy as there are a lot of morons that keep pumping billions into their economy.
Posted by: DarthVader   2021-10-06 16:23  

#6  https://www.bloombergquint.com/gadfly/fantasia-opens-a-nasty-new-chapter-in-the-china-evergrande-saga

This appear to be a repudiation rather than an insolvency. It may have closed the market for new Chinese bond issues to international investors. It's an intriguing move. As I understand it, Evergrande is stiffing foreign creditors while paying Chinese ones. That may have dire implications for all foreign investors there, portfolio and direct.
Posted by: Zhang Fei   2021-10-06 14:48  

#5  ^ Cateful what you wish for. The most dangerous time for a bad government is when a weak leader seeks to change it. All bets are off now
Posted by: Sheba tse Tung4690   2021-10-06 12:35  

#4  Stories like the Evergrande one above and this one do give me comfort about China.

Much as the Biden crew is attacking America, the Xi crew is attacking China--and with much more disastrous results. I was alarmed at Biden's incompetence in facing off against China--but it does appear that in Xi he has a very, very weak opponent whose ignorance surpasses even his.
Posted by: Tom   2021-10-06 11:40  

#3  Get mental health!
Posted by: Bertie Crains2651   2021-10-06 09:45  

#2  
Posted by: Greng Black3494   2021-10-06 09:07  

#1  Chinese dominoes - fun game!
Posted by: Raj   2021-10-06 01:47  

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