© AP
Once again a Chinese real estate group has run into financial problems. After Evergrande and Country Garden, Beijing’s Radiance Group missed a payment on Wednesday evening. This involved the repayment of a bond loan of 300 million dollars (approximately 275 million euros).
In a statement to the Hong Kong stock exchange, the group said that its turnover has come under severe pressure due to changes in the Chinese real estate market. “We are doing everything we can to find a solution and aim to maintain close communication with bondholders,” Radiance said.
China is suffering from a severe real estate crisis that is affecting the entire economy. Many project developers have taken on heavy debt in recent years in order to grow quickly. But some were no longer able to complete their projects, which has eroded buyer confidence. Evergrande alone, the country’s largest developer, is groaning under $300 billion in debt.
Country Garden also failed to pay off a bond debt last week. But the company has thirty days before there is an official “default”.