Sixty people demonstrating in China, it is illegal, but it shows the concern of these owners and building professionals. They are in front of the headquarters of the Chinese real estate giant Evergrande, which is on the verge of bankruptcy.
China’s biggest real estate developer is crushed by liabilities of nearly 260 billion euros.
Evergrande succumbed to new rules imposed by Beijing to curb real estate speculation.
The group can no longer sell goods before having formally finished construction. This allowed it to finance itself and keep its activities afloat.
Subcontractors, suppliers, are no longer paid, owners who had bought off plan will never see their homes.
The fall of Evergrande is a disaster for the Chinese who have invested heavily in stone, a bankruptcy that threatens the social stability of the country, if the price of real estate plummets. The macroeconomic consequences could be severe if the value of the assets fell below the amount of loans to be repaid. Real estate occupies a considerable place in the economy, representing more than a quarter of investments in the country.
According to experts, the group still has to complete 1.4 million homes for a total value of 170 billion euros.
Despite the pressure, Beijing “will not let Evergrande go bankrupt,” analysts say.