By Eric Ng | 5 October 2021
- The missed payment on Monday will add to fears about the financial health of the Chinese property sector
- Earlier on Monday, Fitch Ratings downgraded Fantasia’s long-term foreign currency issuer rating to ‘CCC’ from ‘B’, citing the risk of default
SOUTH CHINA MORNING POST — Fantasia Holdings Group, the Shenzhen-based property developer founded by the niece of a former Chinese vice-president, has failed to repay US$205 million of debt due on Monday.
The default will add to fears about the financial health of the Chinese property sector, as the liquidity crisis at China Evergrande Group – the world’s most indebted property developer – continues to unfold.
Separately, Country Garden Services Holdings, the Hong Kong-listed property management unit of developer Country Garden, said that a Fantasia-controlled unit also failed to repay the principal amount on a 700 milllion yuan (US$108 million) bond on Monday and a default by Fantasia is likely. The news sent Country Garden’s shares down as much as 4.8 per cent in Hong Kong on Tuesday.
“Under the indenture governing the 2021 notes, all outstanding principal amount of the 2021 notes shall be due on 4 October 2021,” Fantasia said in a filing to Hong Kong’s stock exchange late on Monday. […]