27 Oct 2021 South China Morning Post (SCMP) published an article about people recently concern about the high debts of China’s property developers as the large-scale liquidity crisis of China Evergrande Group, the biggest housing builder in China by sales, has spooked the financial markets and decreased investor confidence.

SCMP interviewed with major credit rating companies about impact and challenges for the China’s developers. Simon Lee, CFA – Associate of Pengyuan International’s view on China’s property developers was mentioned in SCMP news.

“The recent defaults have dampened sentiment in the capital markets” Simon said.

“Property developers are expected to face more refinancing challenges in a tight credit environment. We expect those property developers with lower land bank quality, weaker sales execution capability and higher leverage to face a substantial increase in credit spread as the credit risk and default risk have been escalated.”

However, it is unlikely Beijing will roll out further credit tightening “as the government is striking a balance between financial stability and deleveraging,” Simon mentioned.

The below article is provided by South China Morning Post and its's published on https://www.scmp.com/business/banking-finance/article/3153906/evergrande-crisis-third-chinas-developers-may-face

**************************************

EVENT & MEDIA ENQUIRIES 

Ms. Charley Lui 

+852 3615 8296

charley.lui@pyrating.com

RATING SERVICES ENQUIRIES

Mr. Allen Wei

+852 3615 8324

allen.wei@pyrating.com