Chinese real estate market
Evergrande halves loss in the first half of the year
08/27/2023, 4:06 p.m
A small ray of hope for the Chinese real estate giant Evergrande, which has faltered severely: According to the company, a short boom in the real estate market has given the company a 44 percent increase in sales. In this way, the loss can at least be reduced.
Highly indebted Chinese real estate developer China Evergrande roughly halved its first-half loss thanks to higher earnings. From January to June, the minus was 33 billion yuan (around 4.2 billion euros) after 66.4 billion yuan a year earlier, China Evergrande said. Sales rose 44 percent to 128.2 billion yuan during the period. The short boom in the real estate market at the beginning of the year was used successfully.
China Evergrande, the world’s most indebted real estate company, struggled two years ago after China’s real estate bubble burst but has so far avoided a disorderly collapse. In mid-August, it applied for bankruptcy protection in the USA as part of its restructuring.
China Evergrande shares are set to resume trading in Hong Kong from Monday. All of the guidelines required by the Hong Kong stock exchange have been “reasonably” met, the company said. All outstanding financial results required by the listing rules have been released. The company also believes the issues raised by its former auditor, PricewaterhouseCoopers, have been “satisfactorily resolved.” The papers have been suspended from trading for more than a year, also because numerous investigations are ongoing.
Evergrande is not the only Chinese giant in trouble. Investors are also worried about Country Garden Holdings, another troubled real estate developer.