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Evergrande's headquarters in Shenzhen: The group is considered the world's most indebted real estate company
Photo: Aly Song / REUTERS
The Chinese real estate developer Evergrande is still in great financial trouble – but at least the loss in the first half of the year has been roughly halved. From January to June, the loss amounted to the equivalent of around 4.2 billion euros – after around 8.4 billion euros a year earlier, the company announced on Sunday. Sales rose by 44 percent to the equivalent of 16.2 billion euros during the period. The short boom in the real estate market at the beginning of the year was successfully exploited.
Evergrande is considered the most indebted real estate company in the world. The group got into trouble two years ago after the real estate bubble burst in China, but has so far been able to avoid a disorderly collapse. In mid-August, it filed for creditor protection in the United States as part of its restructuring.
Other real estate developers in China are also struggling with massive financial problems. As a result, the country's economy is threatened by a devastating economic crisis. (You can read more about the consequences for the Chinese economy here).
From Monday, the shares of China Evergrande are to be traded again in Hong Kong. All guidelines required by the Hong Kong Stock Exchange had been "adequately" fulfilled, the group said on Friday. The papers had been suspended from trading for more than a year, partly because numerous investigations are underway.
mic/Reuters