Another one bites the dust: A Chinese real estate developer is on the verge of bankruptcy, and is expected to default on millions in debt — the latest sign the government is willing to let some pawns fall as it moves toward a more market-oriented economy.
Zhejiang Xingrun Properties, based in China’s southeast coast, won’t be able to pay back 3.5 billion yuan ($565 million) in bank and other debts, according to state media. The company’s largest creditors include major state-owned banks, but government help doesn’t appear to be on the way. China’s central bank has denied reports that it was in emergency negotiations with the company, according to a statement on its official microblog.
Xingrun’s problems are coming to light less than two weeks after the country saw its first corporate bond default, a significant event as China has previously arranged last-minute rescues to save troubled companies. Premier Li Keqiang, one of China’s top leaders, suggested last week that more company defaults will be unavoidable going forward.
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Sophia Yan, CNN Money via CHINA US Focus http://ift.tt/1nEoaP1
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