DJ How Beijing's Debt Clampdown Shook the Foundation -2-
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Evergrande posted photographs of the 62-year-old chairman smiling in a navy jacket at Tiananmen Square on its website, extolling his more than 35 years as a party member. He was quoted saying he would continue to manage his business well and dedicate himself to public welfare.
The stock and bond selloffs deepened over the summer. Evergrande's liquidity problems worsened, forcing it to start paying some of its suppliers and contractors with flats it hadn't sold. In mid-August, financial regulators summoned Evergrande's top executives and told them to fix the company's problems without disrupting the financial and property markets.
The company is trying to offload other assets to raise cash, and is in talks to sell part of its electric-vehicle business, whose market value has declined by more than $80 billion from a recent peak.
Stephen Sum, who runs a real-estate agency focusing on China's Greater Bay Area, said Evergrande's troubles have hurt the wider property sector. "It's like the game of Monopoly," he said of the developer's survival strategy. In the real-estate board game, players that are short on cash have to sell their properties to avoid becoming bankrupt.
Business at Mr. Sum's Hong Kong-based firm -- which markets homes from many developers -- has fallen by half since bad news about Evergrande dominated headlines. He said the news has made people more wary about buying properties in general.
--Quentin Webb contributed to this article.
(END) Dow Jones Newswires
September 18, 2021 05:30 ET (09:30 GMT)