It’s fun to watch. China’s Evergrande, the most indebted developer in the known universe, is hurtling into the abyss. Its deleveraging efforts have all been for nought:
On the face of it, China Evergrande Group made progress cutting its debt load in the first half of the year. On closer examination, paying its dues got even harder.
Evergrande’s total liabilities including bills owed to suppliers rose to 1.97 trillion yuan ($305 billion) as of June 30, near a record high, results showed Tuesday. While its borrowings shrank to 572 billion yuan, the group’s cash and cash equivalents plunged to a six-year low.
