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China Evergrande reports progress in resuming home deliveries

Stock MarketsDec 26, 2021 12:45PM ET
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© Reuters. FILE PHOTO: The China Evergrande Centre building sign is seen in Hong Kong, China December 7, 2021. REUTERS/Tyrone Siu/File Photo

SHANGHAI (Reuters) - China Evergrande Group said on Sunday it had made initial progress in resuming construction work with its chairman vowing to deliver 39,000 units of properties in December, compared with fewer than 10,000 in each of the previous three months.

Evergrande is the world's most indebted property developer, with over $300 billion in liabilities. It is struggling to repay bondholders, banks, suppliers, and deliver homes to buyers, epitomising a bloated industry suffering from the Chinese government's deleveraging campaign.

Company chairman Hui Ka Yan stressed during a meeting on Sunday that no one at Evergrande would be allowed to "lie flat", urging employees to fight day and night so that sales can be resumed and debts repaid, Evergrande said in a statement.

"With the company resuming construction work at full steam, the group plans to deliver 115 projects in December," Hui said in the statement. "With five days left this month, we must go all out to ensure we meet the goal of delivering 39,000 units this month."

His pledge came a day after China's top real estate regulator told the official Xinhua News Agency the government would resolutely tackle risks stemming from overdue delivery of residential properties by some top developers.

Also on Saturday, China's central bank said it would safeguard the legal rights of home buyers.

The statement said Evergrande had resumed cooperation with more than 80% of decoration companies and long-term suppliers, having signed 6,869 contracts with material suppliers.

The Chinese government has in recent months marginally eased property financing to prevent a hard landing of the sector, but has not reversed its property curbs designed to reduce leverage and discourage speculation.

Chinese authorities are scrutinising the assets of Evergrande and its wealthy chairman but expect no fire sale for now, two sources with direct knowledge of the matter told Reuters in mid-December.

China Evergrande reports progress in resuming home deliveries
 

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Comments (11)
George Jetson
George Jetson Dec 27, 2021 4:09PM ET
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chiiineerrr CCP Tofu Corp
Ac Tektrader
Ac Tektrader Dec 26, 2021 11:18PM ET
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the concentration camps have been proven to be real by investigations from the United Nations, and the American CIA as well as the british government's intelligence services. do I believe anything you say, since you are bought and paid for by a ruthless dictatorship run by lying psychopaths. or the reports produced by the UN and the western democracies. China got were it is today by stealing other countries and corporation's industrial and scientific secrets, then manipulating and bulling it's trading partners. Proof, there's 25 years of proof. now it time for China to pay the price for it's crimes against humanity.and its own citizens.
Jim Durkin
Jim Durkin Dec 26, 2021 11:07PM ET
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I heard China has a lottery system in place for home buyers in major cities. The wait is very long to purchase a home. Is the lottery due to Evergrande’s inability to fulfill their obligations or a very hot market?
Mike ND
Mike ND Dec 26, 2021 8:42PM ET
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Paper Tiger crumbling
Ac Tektrader
Ac Tektrader Dec 26, 2021 4:36PM ET
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elon can be a fool at times and quite a manipulator. as for buffet he is secretly selling his investments in China. his holdings are large, and he need fools to sell to. buffet always recommends the stocks and markets he is exiting. as for you David 9, how's life living and supporting an authoritarian dictatorship, one that builds forced labor camps. an authoritarian dictatorship that harvests organs from politcal prisoners. did your chinese masters finally give you a raise or are you paid by the "peoples liberation(enslavement)" army
Ac Tektrader
Ac Tektrader Dec 26, 2021 4:36PM ET
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David David the concentration camps have been proven to be real by investigations from the United Nations, and the American CIA as well as the british government's intelligence services. do I believe anything you say, since you are bought and paid for by a ruthless dictatorship run by lying psychopaths. or the reports produced by the UN and the western democracies. China got were it is today by stealing other countries and corporation's industrial and scientific secrets, then manipulating and bulling it's trading partners. Proof, there's 25 years of proof. now it time for China to pay the price for it's crimes against humanity.and its own citizens.
Ac Tektrader
Ac Tektrader Dec 26, 2021 4:08PM ET
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the Chinese dictatorship is doing it's best to hide the huge financial planning errors that it has made in the last 25 years. they used the housing and construction sectors to inflate their GDP numbers well beyond the true economic expansion rates. then, there's the cooked books of the biggest companies, that have the government and the PLA as major stock holders. now, they are paying the price for all their corruption. the markets will probably see further collapse in their real estate and stock markets and possibly a financial panic resembling 1929-30,or fall of 2008. they can lie and con the markets for a time, but not forever.
Ac Tektrader
Ac Tektrader Dec 26, 2021 4:08PM ET
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elon can be a fool at times and quite a manipulator. as for buffet he is secretly selling his investments in China. his holdings are large, and he need fools to sell to. buffet always recommends the stocks and markets he is exiting. as for you David 9, how's life living and supporting an authoritarian dictatorship, one that builds forced labor camps. an authoritarian dictatorship that harvests organs from politcal prisoners. did your chinese masters finally give you a raise or are you paid by the "peoples liberation(enslavement)" army.
Chad RicherThanYou
Chad RicherThanYou Dec 26, 2021 3:10PM ET
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Total financial collapse worse than 2008 is coming this year
Chad RicherThanYou
Chad RicherThanYou Dec 26, 2021 3:10PM ET
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David David Math, economics and world history
TJ Theodore
TJ Theodore Dec 26, 2021 2:37PM ET
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Comical that 39k decree comes out with 5 days left in the month
Ac Tektrader
Ac Tektrader Dec 26, 2021 1:51PM ET
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they're a dictatorship.... dictatorships will always hide any falures when they first appear. so, they didn't see this coming if they had, it would not have become a dangerous problem.
Todd Gray
Todd Gray Dec 26, 2021 1:43PM ET
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There are no civilizations on earth with more experience, depth & longevity, than China & India. I wouldn't underestimate China. People fantasize when they think the Chinese government didn't see this coming. They knew how to handle it, before it arose.
 
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