The Magazine for Asian Investors
On Sunday, China Evergrande Group submitted its first progress report on the resumption of construction work. The company’s president pledged to deliver 39,000 real estate units in December. This is 10,000 units less than the previous 3 months.
Evergrande is the world’s most indebted real estate developer, with more than $300 billion in debt, struggling to pay bondholders, banks and suppliers and deliver homes to buyers. The company is a good example of a bloated industry that has benefited from the Chinese government’s tax relief campaign.
The company’s chairman Hui Ka Yan stressed at a meeting on Sunday that Evergrande has asked employees to fight day and night to resume sales and settle Evergrande’s debts.
“With the company returning to construction work at full strength The group plans to deliver 115 projects in December,” Hui said in a statement and adds “There are five days left in this month. We will have to do our best to ensure we meet our target of delivering 39,000 units this month.”
China’s top real estate regulator has said the government will take firm action against the risks posed by the handover of overdue homes by some of the leading developers.
Evergrande is again working with over 80% of the suppliers to complete the remaining housing units. Previously, the company has signed 6,869 contracts with material suppliers.