This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-62287685
The article has changed 4 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Evergrande: Crisis-hit property giant faces deadline after bosses quit | Evergrande: Crisis-hit property giant faces deadline after bosses quit |
| (about 4 hours later) | |
| Embattled Chinese real estate giant Evergrande is expected to deliver a preliminary restructuring plan this week, following the exit of two bosses. | Embattled Chinese real estate giant Evergrande is expected to deliver a preliminary restructuring plan this week, following the exit of two bosses. |
| The firm says its chief executive and finance head have resigned, after an internal probe found that they misused around $2bn (£1.7bn) in loans. | The firm says its chief executive and finance head have resigned, after an internal probe found that they misused around $2bn (£1.7bn) in loans. |
| Evergrande has more than $300bn in liabilities and defaulted on its debts late last year. | Evergrande has more than $300bn in liabilities and defaulted on its debts late last year. |
| The crisis has spooked traders who fear contagion in China's property sector. | The crisis has spooked traders who fear contagion in China's property sector. |
| How China is trying to limit the Evergrande crisis | How China is trying to limit the Evergrande crisis |
| Chinese developers accept farm produce for homes | Chinese developers accept farm produce for homes |
| On Friday, Evergrande said it found that chief executive Xia Haijun and chief financial officer Pan Darong were involved in diverting 13.4bn yuan ($2bn; £1.7bn) in loans secured by its property services unit to the wider group. | On Friday, Evergrande said it found that chief executive Xia Haijun and chief financial officer Pan Darong were involved in diverting 13.4bn yuan ($2bn; £1.7bn) in loans secured by its property services unit to the wider group. |
| The firm said in a filing to the Hong Kong Stock Exchange that Mr Xia and Mr Pan had resigned because of their "involvement in the arrangement of the pledges". | The firm said in a filing to the Hong Kong Stock Exchange that Mr Xia and Mr Pan had resigned because of their "involvement in the arrangement of the pledges". |
| In a separate statement, it said the funds "were transferred and diverted back to the group via third parties and were used for the general operations of the group". | In a separate statement, it said the funds "were transferred and diverted back to the group via third parties and were used for the general operations of the group". |
| Evergrande added that it was in talks with its property services unit over a repayment plan. | Evergrande added that it was in talks with its property services unit over a repayment plan. |
| A $2.6bn deal to sell a majority stake in the unit to a rival developer fell through in October. | A $2.6bn deal to sell a majority stake in the unit to a rival developer fell through in October. |
| Evergrande, which is the world's most indebted property developer, had been struggling to make payments on its over $300bn of liabilities and missed a crucial repayment deadline on its offshore debt in December. | Evergrande, which is the world's most indebted property developer, had been struggling to make payments on its over $300bn of liabilities and missed a crucial repayment deadline on its offshore debt in December. |
| Its shares have fallen by more than 75% over the last year in Hong Kong and have been suspended from trading for months. | Its shares have fallen by more than 75% over the last year in Hong Kong and have been suspended from trading for months. |
| The company is scheduled to announce a preliminary plan to restructure its debts before next week. | The company is scheduled to announce a preliminary plan to restructure its debts before next week. |
| China's property crisis is estimated to have wiped more than a trillion dollars off the value of the sector last year. | China's property crisis is estimated to have wiped more than a trillion dollars off the value of the sector last year. |
| The very serious potential fallout from Evergrande collapsing has led some analysts to suggest that Beijing may step in. | The very serious potential fallout from Evergrande collapsing has led some analysts to suggest that Beijing may step in. |
| On Monday, Japanese banking giant Nomura said "an increasing number of developers have failed to repay their debt and continue their construction works" since the Evergrande crisis. | On Monday, Japanese banking giant Nomura said "an increasing number of developers have failed to repay their debt and continue their construction works" since the Evergrande crisis. |
| Also on Monday, it was reported that China was planning to start a real estate fund to support more than a dozen property developers, including Evergrande. | |
| The fund could be worth up to 300bn yuan, according to reports. | |
| Home sales in China have fallen for 11 consecutive months, official data shows. That is the longest slump since China created a private property market in the late 1990s. | Home sales in China have fallen for 11 consecutive months, official data shows. That is the longest slump since China created a private property market in the late 1990s. |
| Several Chinese developers have halted the construction of homes that had already been sold, because of concerns over cash flow. | Several Chinese developers have halted the construction of homes that had already been sold, because of concerns over cash flow. |
| In recent weeks, some home buyers have threatened to stop paying their mortgages until the work restarts. | In recent weeks, some home buyers have threatened to stop paying their mortgages until the work restarts. |
| More than 200 projects by at least 80 developers have been affected, according to the Shanghai-based E-house China Research and Development Institution. | More than 200 projects by at least 80 developers have been affected, according to the Shanghai-based E-house China Research and Development Institution. |
| The China Banking and Insurance Regulatory Commission has pledged to help local governments in "guaranteeing the delivery of homes," state media reported. | The China Banking and Insurance Regulatory Commission has pledged to help local governments in "guaranteeing the delivery of homes," state media reported. |
| You may also be interested in: | You may also be interested in: |
| What China's Evergrande crisis means for the world | What China's Evergrande crisis means for the world |
| What China's Evergrande crisis means for the world | What China's Evergrande crisis means for the world |