China’s Evergrande, the world’s largest debtor, continues its fall from profitability while another company in the same sector, Fantasia Holdings, announced it is liquidating as well.
We’ve reported on Evergrande for a few months now. The one time world’s largest debtor was failing back in September.
This was a sign of a bigger problem for China involved in their real estate sector.
Today in Hong Kong, the stock price for Evergrande decreased again after the Chairman of the company sold a significant stake he held in the failing company.
Shares in China Evergrande Group fell as much as 4.8% on Monday morning, after its chairman trimmed his stake in the cash-strapped property developer to raise about $344 million.
Now another large holding company involved in China real estate is filing for liquidation, Fantasia Holding Hong Kong.
Fantasia Holding Hong Kong filed for liquidation.
This is another real estate developer, similar to #Evergrande.
More to come. pic.twitter.com/82MihJ6iJZ
— Wall Street Silver (@WallStreetSilv) November 28, 2021
Fantasia is not as large as Evergrande but its insolvency along with Evergrande’s indicates a crack in the China real estate sector.