The default of the Evergrande Group appears to have been the first piece of debt-laden Chinese real estate domino.
Last week, Sinic Holdings warned lenders and investors that it was very likely that the offshore bonds, due on Monday, would not be paid in the $250 million range. So far, the regional press has not reported that this amount has been paid.
Another Chinese real estate giant, China Properties Group, announced on Friday the first phase of default of $226 million, which expired on October 15.
Added to this list is Fantasia Holdings, which since the beginning of October has had 206 million dollars.
The news comes the same week that Evergrande will formally default directly on its debt if it fails to pay interest on offshore dollar-denominated bonds that matured in September.
The company has been silent about coupon payments for four other issues of bonds that have matured in recent weeks.
In the past week, several rating agencies have had to lower the ratings of several Chinese real estate companies.
The People’s Bank of China has already warned that real estate companies that have issued debt abroad, in an offshore system, “must meet their obligations,” ruling out any state support.
On Sunday, Governor Yi Gang stressed that authorities would prevent Evergrande’s problems from spreading to other real estate companies.
“The Chinese economy is doing well, despite the mismanagement of some companies,” the governor was quoted as saying by Reuters.
The real estate sector accounts for about a quarter of China’s gross domestic product, according to Moody’s data.