Off balance sheet debt plagues Evergrande and its rivals - JPM

JPMorgan on the hidden debt in China's property bubble A report from JPMorgan is doing the rounds and it outlines used off balance sheet debt in a window-dressing effort to bring down leverage ratios. They note that Evergrande reported 100% leverage ratios but when you add in commercial paper, wealth management products and perpetual securities the net gearing is  177% and "and could be even higher". They also highlight other property firms that could have leverage significantly higher as: R&F Properties Sunac China Holdings Country Garden China returns from holiday today and that means that Evergrande will be back on the menu.Invest in yourself. See our forex education hub.

Off balance sheet debt plagues Evergrande and its rivals - JPM

JPMorgan on the hidden debt in China's property bubble

JPMorgan on the hidden debt in China's property bubble

A report from JPMorgan is doing the rounds and it outlines used off balance sheet debt in a window-dressing effort to bring down leverage ratios.

They note that Evergrande reported 100% leverage ratios but when you add in commercial paper, wealth management products and perpetual securities the net gearing is  177% and "and could be even higher".

They also highlight other property firms that could have leverage significantly higher as:

  • R&F Properties
  • Sunac China Holdings
  • Country Garden
China returns from holiday today and that means that Evergrande will be back on the menu.
Invest in yourself. See our forex education hub.