Challenging outlook: An exterior view of China Evergrande Centre in Hong Kong, China. Big challenges loom for the giant developer: a debt burden north of US100bil, potential restrictions on home pre-sales that are a key source of funding, and diminished room for the share buy-backs that have historically been used to prop up Evergrande’s stock price. — Reuters
HONG KONG: China Evergrande Group had to come back to Earth after last year’s stratospheric gains. The question now is exactly how bumpy that re-entry is going to get.
Big challenges loom for the giant developer: a debt burden north of US$100bil, potential restrictions on home pre-sales that are a key source of funding, and diminished room for the share buy-backs that have historically been used to prop up Evergrande’s stock price.
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