Another CCP Real Estate Company, Shimao Group, Faces Debt Distress

Translated by: MOS Education Team – Maverick

On December 14th, the share price of Shimao Group, one of the largest real estate developers in Communist China, plummeted by a record 20% due to unmanageable rising debt that the company has to sell assets. Sources from Communist China on December 17th showed Shimao Group’s total obligations reached RMB 463.6 billion, of which short-term loans are RMB $44.443 billion, and accounts and bills payable are RMB 87.404 billion. However, the Shimao account only holds RMB 74.769 billion cash and equivalent.

Shimao Group’s total obligations reached RMB 463.6 billion, of which short-term loans are RMB $44.443 billion, and accounts and bills payable are RMB 87.404 billion. However, the Shimao account only holds RMB 74.769 billion cash and equivalent.

Miles Guo mentioned several times that the CCP real estate debts were tremendous, and the debtors never planned to repay. Once the real estate “debt bomb” detonates, it will inevitably wear down other financial industries, such as domestic banks and insurance, and ignite an explosion inside CCP’s overall economy. Moreover, the CCP’s inextricable connections with the major economies, the shockwave of the CCP economy detonation will spread to the global economy and trigger a financial tsunami.

Shortly in a few months, many CCP well-known real estate developers, such as Evergrande, Sunshine 100, and Fantasia, unveiled debt defaults, one after another. The newly listed Shimao Group indicates the CCP is sliding toward the brink of economic collapse.

Proofread by: Wenfei

Edited by: Wenfei

Posted by: Wenfei

Reference: https://baijiahao.baidu.com/s?id=1719378622215618170&wfr=spider&for=pc https://www.theguardian.com/world/2021/dec/15/china-housing-market-slumps-again-as-another-developer-runs-into-trouble

Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.

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