SHANGHAI: China Evergrande Group’s target for cutting its US$100bil (RM414.75bil) in debt hinges on more profit-squeezing property price cuts and aggressive equity fundraising from its non-core businesses.
After reporting its second straight year of declining profit, the nation’s most indebted developer said that it has made early progress on paring borrowings and unveiled plans to roughly halve the remainder over the next two years. To meet the goal, Evergrande needs to sustain share sales in its new businesses, some of which haven’t ramped up yet, analysts said.
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