DECRYPTION – Real estate sales fall in a context of sluggish economic activity, restrained by anti-Covid measures.
The situation of the real estate sector is not improving in China. The total area of homes sold in 17 major cities fell 33.4 percent in July from June, China Index Academy said. Housing prices are stable or down slightly, adds the Shanghai-based real estate data provider.
Evergrande, former number one in Chinese real estate, on the verge of bankruptcy for more than a year, has also not kept its commitments. It was to present, before July 31, a plan to restructure its 300 billion dollars of debt, of which around 20 billion are held by international investors.
Read alsoThe “zero Covid” worsens the real estate crisis in China
Evergrande mentioned the use of capital from its foreign subsidiaries to repay bondholders without giving concrete indications. On Monday, the real estate group indicated that, to compensate for the non-reimbursement of a loan by one of its subsidiaries, it would have to pay 1.3 billion dollars (1.27 billion euros) in shares that it …
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