Evergrande Debt Crisis Saga Continues with Chinese Developer Fantasia

Fantasisa a luxury property developer fails to pay its outstanding debt payment

Fantasia Holdings Group Co. (1777 HK) another Chinese developer in China failed to repay debt payment on Monday adding to the ongoing concern of contagion of China Evergrand’s debt crisis.

The company in a statement said it failed to pay USD 205.7 million on October 4.

Trouble at Fantasia adds to the stress spread across Chinese property sectors, reflecting the underlying condition of the smaller real estate developers in the country. Small scale developers are already under pressure from increasing bond yield which is at decades high.

However, S&P Global says likely default of Evergrande will not bring any substantial impact on the provincial and national economy of China.

According to first half financial statement, Fantasia’s liabilities were USD 12.669 billion.

Earlier on September 20, the company said in a statement it had “sufficient working capital and no liquidity issue”.

Trading of the stock has been suspended in the Hang Seng exchange earlier on Tuesday.

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