Connect with us

Economy

China’s real estate sector is falling into dominoes. Beijing accuses companies of “mismanagement” – Executive Digest

Published

on

China's real estate sector is falling into dominoes.  Beijing accuses companies of "mismanagement" - Executive Digest

The default by the Evergrande group appears to be the first part of a Chinese real estate domino strangled by debt.

Sinic Holdings warned lenders and investors last week that it will likely not pay off the $ 250 million in offshore bonds due this Monday. So far, the regional press has not reported that such a payment has been made.

On Friday, another Chinese real estate giant, China Properties Group, announced the first round of defaults on a $ 226 million debt that expired on October 15.

Added to this list is Fantasia Holdings, which has had $ 206 million in debt since early October.

The news comes in the same week that Evergrande will officially default on it if it does not pay interest on its US dollar offshore bond maturing in September.

The company has remained silent on coupon payments on four other bond issues that have expired in recent weeks.

Last week, a number of rating agencies were forced to downgrade the ratings of several Chinese real estate companies.

The People’s Bank of China has already warned that real estate companies that have issued debt securities offshore abroad “must fulfill their obligations”, barring any support from the state.

Gov. Yi Gang stressed on Sunday that authorities will prevent Evergrande’s concerns from spreading to other real estate companies.

“The Chinese economy is doing well despite the mismanagement of some companies,” concluded the governor, quoted by Reuters.

Real estate accounts for about a quarter of China’s GDP, according to Moody’s.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Facebook owner lost nearly 7% on Wall Street’s new red day – IVF

Published

on

Facebook owner lost nearly 7% on Wall Street's new red day - IVF





Facebook owner lost nearly 7% on Wall Street’s new red day – IVF
































Your browser is out of date!

Update your browser to get the best experience and visualization of this site. Update your browser now

×

See also  The fuel bill will be required to "mandatory indicate" the discount provided by the government.
Continue Reading

Economy

Private consumption and investment could lead to a decline in GDP in the fourth quarter – ECO

Published

on

Private consumption and investment could lead to a decline in GDP in the fourth quarter - ECO





Private consumption and investment could lead to a decline in GDP in the fourth quarter – ECO






























Your browser is out of date!

Update your browser to get the best experience and visualization of this site. Update your browser now

×

See also  Electric cars: which brand sells the most in Portugal?
Continue Reading

Economy

Portugal Could Become a Reshoring Hub in Europe According to New Report – Executive Digest

Published

on

Portugal Could Become a Reshoring Hub in Europe According to New Report - Executive Digest

European companies are looking in the EMEA region (which covers Europe, the Middle East and Africa) for an alternative to manufacturing and sourcing in Ukraine and Asia after months of supply chain disruptions, according to a new Supply Chain Disruptions report sponsored by JLL.

According to this report, there are several companies operating in the retail and manufacturing sectors that have already decided to partially or completely redistribute their production, and the data shows that the new European beneficiaries of the “reorientation” are Central Europe and Romania, and the European borders with Turkey and Morocco are also on the radar.

This trend follows a pandemic that has caused disruption in distribution networks and serious problems in ports and airports, so companies have begun to choose “reshoring” as an attempt to solve the problem of disruption in supply chains.

JLL also expects that the shortage of land and labor will boost demand in Central Europe, from the primary market to the secondary and tertiary markets, the latter strategically located.

Data from Flexport (a global logistics platform) shows that the average container flight from Asia to Europe has almost doubled since 2019, and Buck Consultants International (BCI) research confirms the same as JLL: more than 60% of US and European companies plan to send part of their products back to their country of origin.

Given the existing transport networks and logistics gateways, it can be said that goods will circulate primarily along two distribution corridors: the traditional European dorsal (from central England to northern Italy) and the emerging “Black Sea banana” connecting Budapest. to the Black Sea.

See also  Decide refuses to reconsider GM lawsuit against Fiat Chrysler

Marlene Tavares, Head of Retail Investment and Logistics at JLL, explains: “The discussion about nearshoring (where operations move to a country close to the country of origin, as opposed to offshoring) is not new. Rising wages in places with low-cost production and increased risk from climate change, strikes and accidents such as the blockade of the Suez Canal have sparked controversy over the issue over the past decade.

However, a more favorable cost-risk ratio and the loss of many manufacturing infrastructures in Europe continued to give the Asian continent an advantage in hosting large distribution centers and manufacturing a wide range of products. This scenario is now changing due to the recent situation as well as new consumption habits. In this context, Portugal has a competitive advantage due to its very attractive geographic location and demographics, which place us prominently in the European Neighborhood Strategy,” he emphasizes.

Continue Reading

Trending