Nomura estimate of China property developers debt load is $5 trillion

A piece in the Wall Street Journal says that while China Evergrande is the first high-profile real-estate company to run into serious trouble it may not be the last.  Citing Nomura's estimate of debt developers have taken on, at USD $5 tln. The article goes on: Global markets are braced for a possible wave of defaults, with warning signs flashing over the debt of about two-fifths of development companies that have borrowed from international bond investors.  Chinese leaders are getting serious about addressing the debt, with a series of moves meant to curb excessive borrowing.  Some prospective home buyers are balking, forcing the companies to cut prices to raise cash, and potentially accelerating their slide if the trend continues. As I write this, news is crossing re Luxury developer Fantasia Holdings Group Co. - says parent company has formed an emergency group to solve liquidity problems. 

Nomura estimate of China property developers debt load is $5 trillion

A piece in the Wall Street Journal says that while China Evergrande is the first high-profile real-estate company to run into serious trouble it may not be the last. 

Citing Nomura's estimate of debt developers have taken on, at USD $5 tln. The article goes on:

  • Global markets are braced for a possible wave of defaults, with warning signs flashing over the debt of about two-fifths of development companies that have borrowed from international bond investors. 
  • Chinese leaders are getting serious about addressing the debt, with a series of moves meant to curb excessive borrowing. 
  • Some prospective home buyers are balking, forcing the companies to cut prices to raise cash, and potentially accelerating their slide if the trend continues.

As I write this, news is crossing re Luxury developer Fantasia Holdings Group Co. - says parent company has formed an emergency group to solve liquidity problems. 

A piece in the Wall Street Journal says that while China Evergrande is the first high-profile real-estate company to run into serious trouble it may not be the last.