Sunac Unable to Pay Its Maturing Debts, CCP Real Estate Bubble-bursting Accelerates

On March 25, Sunac issued an announcement on the Shanghai Stock Exchange about its two bonds issued in 2020 and 2021. The balance of the bonds are RMB4.00 billion and RMB2.00 billion, respectively, and the dates for payment of principal and interest are April 1 and April 2, 2022. The announcement said that due to the lack of funds, the company expects to be unable to pay the principal and interest on the above-mentioned bonds, and intends to communicate with bondholders in the near future on the rollover and extension of payment. 

Facing the debt pressure, Sunac is finding a solution, planning to provide Sun Hongbin, Chairman of the Board of Directors of Sunac China Holdings Limited, with an unlimited joint liability guarantee as a credit enhancement measure. After Sun Hongbin lent nearly RMB 2.9 billion to Sunac with an interest-free loan from his own pocket in November last year, he again will finance Sunac with a personal guarantee.

According to Miles Guo’s revelations, compared to Evergrande, the impact of Sunac’s debt default on the Chinese Communist Party (CCP)’s real estate will be much stronger. As the CCP virus and vaccine disaster within the mainland continue to intensify, the CCP economy is already at the spent force. There will be more real estate companies bursting their mines because they cannot pay their debts. The CCP real estate bubble is being crushed by a falling domino.

Aussie Brief News

Aussie Brief News

Go to First Page and Get the Latest News.

Translator: HA Multilingual Group – FL
Design&editor: Hbamboo

Leave a Reply

Your email address will not be published.