China Evergrande Group, the world’s most indebted developer, is expected to announce a debt restructuring plan this week. With more than $300 billion in debt, the developer has been at the centre of China’s property quagmire since last year. China’s macroeconomic conditions have deteriorated and the property sector is witnessing unprecedented challenges. Beijing is scrambling to reassure homebuyers who are threatening to stop paying mortgages on unfinished housing projects, in rare protests that’s set to spur a shakeout among developers. The developer’s entire $22.7 billion worth of offshore debt including loans and private bonds is deemed to be in default. The liquidity squeeze at EverGrande subsequently engulfed other Chinese developers as their credit conditions deteriorated, and drove several smaller firms to defaults. . . .
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