Fantasia’s woes add to selling pressure
Shares in several of China’s largest real estate developers were pummeled in Hong Kong on Tuesday amid nervousness about financial transparency and defaults in the industry after Shenzhen-headquartered Fantasia Holdings said yesterday it wasn’t able to make payment on $206 million in debt. Fantasia’s woes only added to investor concern about the future of debt-laden China Evergrande Group which has also been unable to make some payments. China Evergrande Group, the world’s most indebted real estate developer, and Evergrande Property Services, its property management arm, halted trading their shares at the Hong Kong Stock Exchange on Monday. China Evergrande said the suspension was connected to a possible major transaction, and Evergrande Property said it was tied to a possible general offer for its shares.
