Developer China Fortune has 5.3 billion yuan in delinquent loans

SHANGHAI, February 2 (Reuters)China Fortune Land Development Co 600340.SS, a Chinese developer of industrial parks and city real estate, said it had overdue loans worth 5.26 billion yuan ($ 813.37 million) due to lack of cash , but promised he would not dodge repayment obligations.

The default is on loans from banks and trust companies, but there have been no defaults on the bonds, the company said in an exchange filing Monday night.

China Fortune has said liquidity default and stress could impact its operations and funding, and it is actively raising funds and seeking solutions.

The company holds 23.6 billion yuan of bonds maturing in the first half of 2021, according to China Chenxin International Credit Rating Co.

China has limited developer funding and restricted real estate investment to avoid real estate price bubbles. Signs of tight liquidity have also appeared recently in its money markets.

Tight cash conditions are putting pressure on corporate issuers and increasing the risk of more defaults in the coming months amid signs that Beijing authorities are planning to cut COVID-19 stimulus now that the economy has returned to pre-pandemic levels.

($ 1 = 6.4669 Chinese renminbi yuan)

(Reporting by Samuel Shen and Andrew Galbraith; editing by Kim Coghill)

(([email protected]; +86 21 20830018; Reuters messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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