Evergrande’s Worsening Crisis Piles Pressure on Founder to Act Fast
- Hui may try to sell stake to state-run company, analysts say
- Developer’s bonds sink after banks halt some mortgages
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Pressure is mounting on China Evergrande Group’s billionaire founder as fears of a default by the world’s most indebted developer drive away banks and send the company’s bonds tumbling.
The latest blow to Hui Ka Yan’s property empire came on Wednesday, when at least four of Hong Kong’s largest lenders stopped providing mortgages to buyers of Evergrande’s unfinished apartments in the city. That followed a slew of reports in recent weeks about wary banks and overdue payments to suppliers.