Evergrande crisis, China property curbs pose near-term challenges for Singapore developers
AS debt-laden property developer Evergrande buckles under the weight of over US$300 billion in liabilities, cracks are showing in China's property sector with a number of other mainland developers - such as Fantasia Holdings Group and Sinic Holdings Group - defaulting on bond payments recently.
Ratings agencies such as S&P and Fitch in turn have issued downgrades to several firms, flagging concerns over leverage and diminished access to funding.
The shake-up in the property sector comes as the Chinese authorities attempt to reign in debt build-up among developers. Dubbed the "three red lines", more stringent financing rules were introduced back in August last year, ensuring - among other things - that short-term borrowings do not outpace cash reserves.
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