Evergrande’s debt default last year, kicked off China’s housing market slump that just continues to worsen as widespread COVID-19 curbs weaken buyer confidence and market demand.
With tumbling sales, short-term debts, and a lack of offshore refinancing, Chinese property developers are facing a liquidity crisis.
Skyfame Realty, a private Chinese real estate developer, had all its bonds suspended on the Hong Kong Stock Exchange (HKEX) on June 28 after it failed to pay off a secured loan.
According to a June 26 announcement (pdf), Skyfame Realty (00059. HK) failed to obtain approval for an extension of a secured loan “even after the grace period” and was unable to repay the interest or the outstanding principal….