Shares Drop After Zhenro’s Default Warning: Evergrande Update
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Chinese property stocks slid after Zhenro Properties Group Ltd. said it may not have enough cash to meet debt-payment obligations next month, in a move that may undermine efforts by the government to stem financial contagion in the sector.
Meanwhile, a bondholder is suing some directors of Chinese developer Fantasia Holdings Group Co. in Hong Kong, alleging that the company made “inaccurate and misleading” announcements last year, highlighting growing concern about surprise defaults by developers.