China’s Hengda announces default notice ‘owl’… Authorities block market impact

[이미지출처=연합뉴스]

湲 蹂肄

[아시아경제 뉴욕=백종민 특파원] China’s real estate developer Hengda is facing liquidity crisis. The official default (default) declaration is imminent. Authorities have tried to block the possibility of market fluctuations by summoning Chairman Hengda.

According to Bloomberg News on the 3rd (local time), Hengda announced on the night of the night that it would be difficult to repay the debt of $260 million (about 307.5 billion won) requested for payment through the Hong Kong Stock Exchange.

Hengda added that failure to repay the debt could lead to demand for early repayment of other dollar bonds.

If Hungda fails to pay the principal and interest on dollar bonds properly, it means that the entire dollar bond chain defaults worth US$19.236 billion (about 22.7 trillion won).

As Hengda’s liquidity crisis was highlighted, the Chinese government of Guangdong Province summoned Hengda Chairman Xu Zhain in the form of ‘Yetan’ that night. Wetan is a kind of ‘gathering the flag’ in which a government agency publicly summons a company or institution to be supervised, criticizes it, and demands correction.

The People’s Bank of China, the Securities Regulatory Commission, and the Banking Regulatory Commission also issued statements late at night, trying to calm the market’s unrest.

The People’s Bank of China said, “The main cause of the Hengda crisis was that it failed to manage itself properly and pursued blind expansion. “Short-term risks to real estate companies will not affect the normal lending function of the market in the mid- to long-term,” he said.

The Banking Regulatory Commission also emphasized that financial sector debt accounts for only about a third of Hengda’s total debt and is structurally dispersed, and will not negatively affect the normal operation of the financial sector.

The Securities Regulatory Commission also issued a separate statement saying that the mainland stock market in China is stable and the default rate in the bond market is also maintained at a relatively low level of around 1%. said there is


New York = Correspondent Baek Jong-min [email protected]


Source: 아시아경제신문 실시간 속보 by www.asiae.co.kr.

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