Sumary of Chinese property giant on its knees:
- Debt-stricken Chinese developer Evergrande has reached crisis point in more bad news for Australian investors and the iron ore price.
- Dozens of anxious investors protested outside the headquarters of troubled Chinese property giant Evergrande on Tuesday, after the debt-laden firm conceded it was under “tremendous pressure” and may not be able to meet its repayments.
- Evergrande’s plight has raised fears of a contagion across the debt-mired Chinese property sector — which accounts for more than a quarter of the world’s second-largest economy — with a knock-on for banks and investors.
- Should Evergrande collapse, the reduction in construction would significantly reduce demand for iron ore.
- An estimated 60 to 70 people gathered outside Evergrande’s headquarters in the southern city of Shenzhen, demanding answers from the company.
- ” Another man outside the headquarters said his firm was a supplier to Evergrande, and is owed more than 30 million yuan ($6.3 million).
- He said he had previously been offered repayment in the form of property by the group, but they failed to reach agreement on this offer.
- “My family has also been threatened … Evergrande employees in my hometown warned my mother to tell me to stop causing trouble and come home,” he said.