Indebted developer Evergrande says property sales continue to drop, warns again it could default
The Chinese property giant said in a filing with the Hong Kong stock exchange it expects a "significant" continued decline in sales this month.
Evergrande has been trying to sell some assets to ease its liquidity crunch, but said those efforts haven't yielded anything yet.A banner promoting the Emerald Bay residential project outside the China Evergrande Centre in the Wan Chai area of Hong Kong, China, on Friday, July 23, 2021.on Tuesday said its property sales will likely continue to drop significantly in September, resulting in a further deterioration of its cash situation..
Evergrande's stock tumbled nearly 10% in morning trade. So far this year, it has plummeted nearly 80%.Evergrande's sales have been steadily dropping since June. The Chinese property giant said in a filing with the Hong Kong stock exchange it expects a "significant" continued decline in sales this month.
That, Evergrande said, would lead to "the continuous deterioration of cash collection by the Group which would in turn place tremendous pressure on the Group's cashflow and liquidity." "The month of September is typically when real estate companies in China record higher contract sales of properties. However, the ongoing negative media reports concerning the Group have dampened the confidence of potential property purchasers in the Group," the firm said in the filing.
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