Home Sports Evergrande Guangzhou Football Stadium Rumored that Chinese Officials Take Over | China Evergrande Group | Football Club

Evergrande Guangzhou Football Stadium Rumored that Chinese Officials Take Over | China Evergrande Group | Football Club

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[Epoch Times November 26, 2021](The Epoch Times reporter Xu Cuiling reported from Taipei, Taiwan) China Evergrande Group is deeply mired in debt. According to a Reuters report, Chinese officials have taken over Evergrande’s football stadium and are considering selling it for cash repayment. If there is no buyer in the end, it will be acquired by the state-owned Guangzhou Urban Construction Investment Group. In addition, Evergrande is also considering selling its loss-making Guangzhou Football Club.

People familiar with the matter told Reuters that Evergrande is working hard to repay more than 300 billion US dollars in debt and is also considering selling the loss-making Guangzhou Football Club. Guangzhou Evergrande Football Stadium cost 12 billion yuan (US$1.86 billion) to build. Construction will start in April 2020 and is expected to be completed by the end of 2022. By then, it will surpass the Luying Stadium, home of La Liga team Barcelona, ​​to become the world‘s largest football stadium by capacity.

People familiar with the matter pointed out that due to lack of funds, Evergrande has stopped construction and transferred control to the official authorities planning to sell the stadium. If there is still no buyer to take over, it will be acquired by the state-owned Guangzhou Urban Construction Investment Group. Another person familiar with the matter said that construction has been stopped for at least 3 months.

Reuters quoted people familiar with the matter as saying that local governments across China are directing Evergrande to sell some assets. Evergrande’s dilemma in offshore bond repayment has made the market uneasy. A series of other developers’ defaults and credit rating downgrades have also impacted the wider real estate industry. People from all walks of life are also observing whether Evergrande can fulfill the payment of overdue coupons worth US$82.5 million before the 30-day grace period expires on December 6.

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It is also reported that since August, a football school under Evergrande has fired more than 100 employees due to poor turnover, and foreign coaches and translators have been asked to leave.

Evergrande declined to comment. The Guangzhou Municipal Government did not respond to Reuters telephone enquiries, and Guangzhou Urban Construction Investment Group did not respond to faxed requests for comment.

Chinese real estate giant Aoyuan also has a debt crisis

Following Evergrande, Fantasia and Kaisa, Chinese real estate giant China Aoyuan Real Estate has also fallen into a debt crisis. The three major international rating agencies, Standard & Poor’s, Moody’s, and Fitch, collectively downgraded the ratings of Chinese real estate companies in mid-October, putting China Aoyuan, which is tightly funded, into a run.

According to insiders of the group, since Fantasia’s default in early October, creditors have successively proposed to China Aoyuan to repay early. Pressure was already felt internally at that time, and the successive downgrades of rating agencies triggered some foreign dollar debts. In relation to the breach of contract, the creditors also demanded Aoyuan to repay in advance. The sudden increase in debt repayment requirements caused Aoyuan to be embarrassed for a while.

In order to withdraw funds, China Aoyuan had to reluctantly break his arm. According to Caixin.com, China Aoyuan announced on the evening of November 14 that the company plans to sell all the ownership of an old building reconstruction project in Hong Kong, together with the holding company shares that hold the property, and shareholder loans for the total price. 900 million Hong Kong dollars (about 737 million yuan).

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According to the Economic Observer website, China Aoyuan is considering selling its 55% stake in Aoyuan Health. It has contacted many buyers with an offer of about 3 billion yuan. However, according to other reports, the transaction has been followed by ups and downs, and no buyer has been seen so far.

Editor in charge: Lin Qinzhi


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