Private currency reduces Chinese goods while Evergrande lowers prices

Business groups are set to reduce their visibility in China as growing concerns over the health of the sector follow last week’s disloyalty to Chinese debtor Evergrande.

Coller Capital, a London-based economist, said in a report on Monday that about a third of China-based companies have reduced their investment in real estate companies over the next three years. Not a single seller said they wanted to increase their revenue.

The report came just days after Evergrande, the world’s largest debt-ridden company, was brought down “prohibited instability”By Fitch.

Advertisers have been trying to give it a try how widespread from Evergrande instability spread after some of its competitors missed out on foreign exchange payments in recent months. The session has been under a lot of pressure last year after Beijing revealed “three red lines”A plan to reduce debt for developers.

“The potential errors and difficulties of large manufacturing companies have raised concerns about systemic expansion that will not affect the commodity sector and the sector as a whole,” said Manishi Raychaudhuri, Hong Kong’s Asia-Pacific equity chief at BNP Paribas Securities. .

Coller’s report also shows that more than a third of Asian exporters outside China are planning to invest more in other parts of the region.

Indications that Evergrande instability to disrupt Chinese markets intensified Monday, with the Hang Seng Mainland Properties index, which follows 10 of China’s top developers, down 3.6 percent.

Shares in Shimao Group, one of the richest in China, fell by 13.8 percent, while Sunac China Holdings, another manufacturer, fell by 7.9%.

Sunac was reviewed after a preparation letter the government warned that it was facing financial difficulties.

Fantasia Holdings, a medium-term developer whose shares resumed trading on Monday after a two-week suspension, fell to 9.4% before recovering its losses to sell. Fantasia unstable on a $ 206m bond in October.

Trading in the market is very different from last week, when which occurs for the first time The fact that Evergrande failed to pay the $ 82.5m coupon was outraged by reports that Beijing was providing aid to the affected area.

But investors were disappointed Friday, after Chinese policymakers announced that “assets are living, not fiction”, repeating the words used to justify restrictions on promoting development.