China Developers Confront a $197 Billion Challenge in January
- Deferred wages to migrant workers make up majority of payments
- Stressed builders’ bond bills exceed prior two months combined
This article is for subscribers only.
China’s property developers have mounting bills to pay in January and shrinking options to raise necessary funds.
The industry will need to find at least $197 billion to cover maturing bonds, coupons, trust products and deferred wages to millions of migrant workers, according to Bloomberg calculations and analyst estimates. Beijing has urged builders like China Evergrande Group to meet payrolls by month-end in order to avoid the risk of social unrest.