"China Real Estate Industry's Total Debt Default Scale This Year Reaches 8.6 Trillion KRW"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Alongside the bankruptcy crisis rumors surrounding Evergrande Group, concerns about the financial soundness of China's real estate industry are growing. In this context, a survey revealed that the scale of bond defaults in China's real estate sector this year has increased by more than 150% compared to last year, drawing attention.

According to China's state-run Global Times on the 7th, real estate big data firm 'Keerui Research Center' disclosed that the cumulative bond defaults in China's real estate industry from the beginning of this year until the 27th of last month increased by 159% year-on-year to 46.75 billion yuan (approximately 8.6 trillion KRW).

By company, Huaxia Xingfu failed to repay principal and interest amounting to 87.89 billion yuan (approximately 16.2 trillion KRW) as of the 4th of last month, and Taihe was unable to repay 43.693 billion yuan (approximately 8 trillion KRW) by July 30th.

Evergrande is reported to have total assets of 2.38 trillion yuan (approximately 439 trillion KRW) as of the end of June, while total liabilities stand at 1.97 trillion yuan (approximately 363 trillion KRW).

Meanwhile, from January to September this year, the loan amount of 100 major real estate companies decreased by 21% year-on-year to 1.0919 trillion yuan (approximately 201 trillion KRW). Among these, the loan amount in the third quarter was 287.2 billion yuan (approximately 53 trillion KRW), down 38% year-on-year, marking the lowest since 2018.

This content was produced with the assistance of AI translation services.