Chinese developer Fantasia Holdings has failed to make a bond repayment on time in the latest sign of stress in China’s volatile property market.
The mid-sized builder, which is listed on the Hong Kong Stock Exchange, told investors that it was due to repay a $206m bond on Monday but admitted that it was unable to make the payment.
“The board and the management of the company will assess the potential impact on the financial condition and cash position of the group under the circumstances,” said the group.
Its missed bond payment follows that of Evergrande, which has debts of more than $300bn – compared with $13bn at Fantasia. Evergrande is now in talks to sell a 51% stake in its real estate business for $5bn to help shore up its finances.
