A Chinese real estate developer missed a key payment to foreign bondholders this week, heightening the persistent fears of a coming crisis in China’s real estate sector.

The developer, Fantasia Holdings Group, a company specializing in luxury properties that was founded by the niece of Zeng Qinghong, a former vice president, said on Monday night that it had failed to make a final payment of $206 million. The disclosure surprised investors already on edge after two missed payments from China Evergrande Group, the world’s most indebted developer.

Jittery investors sold shares of other developers on Tuesday, sending some stocks down as much as 10 percent. The yields on developers’ bonds were trading at nearly a decade high, meaning the cost of borrowing for the companies had shot up.

In the disclosure made on Monday night, Fantasia said its board would “assess the potential impact on the financial condition and the cash position…

Read more…

Share.

Comments are closed.