Weeks ago, on August 1, word got out that a Tencent subsidiary had agreed to take over 7% of HengTen from an Evergrande subsidiary worth 2.07 billion Hong Kong dollars. HengTen’s subsidiary Ruyi Films, another sector in which the giant had expanded, was one of the producers of “Hello, Mom,” a blockbuster film in China in 2021, capable of grossing 5.41 billion yuan. (about $ 838 million), becoming the highest-grossing film directed by a director.
Evergrande, founded in the late 1990s as a real estate developer, has experienced rapid growth driven mainly by debt, expanding its businesses into sectors such as new energy vehicles, life insurance and even water as well as water. entertainment. Now Allied Resources comes into play with a much larger package of shares to transfer.
The brick still in trouble
But Evergrande is in good company, the whole sector is in crisis and is rushing to find 2 billion dollars in a single day to meet the deadlines. The rush for liquidity by Chinese real estate companies is intensifying.
The companies have announced plans to raise $ 2.4 billion in the past 24 hours, bringing the total over the past week to at least $ 4.2 billion, the latest fundraising includes the sale of China Evergrande Group’s shares in HengTen and the second placement of shares of Country Garden Services Holdings Co. in six months, as well as the sale of onshore bonds by two state developers.
The wave of deals comes as companies face a wall of local and dollar bonds maturing in early 2022. Builders have amassed a total of $ 13.4 billion in dollar bonds and the equivalent of $ 12. $ 6 billion in yuan maturing in the first quarter, according to data compiled by Bloomberg. The average cost of debt refinancing via dollar bond issuance remains prohibitive with yields around 20%.