Last Updated: September 17, 2023, 07:08 IST
The massive debt accrued by the industry’s biggest players. Evergrande had estimated debt of $328 billion (307 billion euros) at the end of June. (File Photo)
Police in China have arrested several employees of a subsidiary of troubled Chinese property giant Evergrande, authorities said Saturday. Employees at Evergrande’s financial subsidiary, Evergrande Wealth Management, were arrested, police in the southern city of Shenzhen said in a statement, without specifying the number of employees or the charges against them.
The statement called on the public to report any cases of suspected fraud to the authorities. Evergrande’s enormous debt has contributed to the country’s deepening property market crisis, raising fears of a global spillover.
The property sector, which along with construction accounts for about a quarter of China’s GDP, is a key pillar of the country’s growth and has experienced a dazzling boom in recent decades.
But the massive debt accrued by the industry’s biggest players — Evergrande had estimated debt of $328 billion (307 billion euros) at the end of June — has been seen by Beijing in recent years as an unacceptable risk for China’s financial system and overall economic health.
Authorities have gradually tightened developers’ access to credit since 2020, and a wave of defaults have followed — notably that of Evergrande. Another Chinese property giant, Country Garden, has narrowly avoided default in recent months, after reporting a record loss and debts of more than $150 billion.
State-backed developer Sino-Ocean on Friday announced it would suspend payments of offshore debts, the latest company to show signs of trouble.
Meanwhile, the Moody’s rating agency this week downgraded the outlook for China’s property sector from “stable” to “negative”, arguing that the government support measures will have only a short-term impact.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – AFP)
छवि स्रोत: पीटीआई घने कोहरे के बीच चलते यात्री। (प्रतीकात्मक छवि) उत्तर भारत के कई…
छवि स्रोत: इंस्टाग्राम एक्ट्रेस का हुआ मिसकैरिज अभिनेत्री प्रत्याशित सेठ और उनके पति अज्ञानी सिद्दीकी…
आखरी अपडेट:23 दिसंबर, 2024, 09:00 ISTएंड्रॉइड 16 2025 में सामान्य से पहले जारी किया जाएगा…
छवि स्रोत: सामाजिक आलस्य, सुस्ती को दूर करने के लिए अपनाएं ये 5 आसान तरीके…
आखरी अपडेट:23 दिसंबर, 2024, 08:41 ISTदो शानदार जीत के बाद, अरविंद केजरीवाल और आप को…
छवि स्रोत: एक्स ब्राज़ीलियाई परीक्षण ब्राज़ील के बीच लोकप्रिय ग्रामाडो शहर में रविवार को एक…