Fantasia, new Chinese real estate developer in turmoil

Posted on Oct 5, 2021, 12:43 PMUpdated Oct 5, 2021, 1:55 PM

The tension is accentuated a little more on the Chinese real estate market, weakened by the setbacks of the giant Evergrande. Fantasia, another promoter, announced on Tuesday that it was unable to repay part of its debt, surprising observers worried about a possible bankruptcy.

On Monday, the Shenzen-based company – like Evergrande – did not honor the repayment of maturing bonds, representing some 206 million dollars (177 million euros). At the same time, the property management company Country Garden Services indicated that a loan of 700 million yuan (93 million euros), also maturing on Monday, had not been repaid by one of the subsidiaries of Fantasia. For its part, Fitch decided to downgrade the company’s rating by four notches, from B to CC-, underlining the threat of default and expressing doubts about the company’s financial transparency.

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