China – Evergrande fails with sales – economy

The clammy Chinese real estate group Evergrande has failed with its plans to sell a large portion of its service division worth billions. Evergrande was recently in negotiations to sell 50.1 percent of its subsidiary Evergrande Property Services to its smaller rival Hopson Development for the equivalent of around 2.6 billion dollars. Evergrande announced the failure of these plans in a statement to the stock exchange on Wednesday. The company is sitting on a mountain of debt equivalent to more than $ 300 billion and has already missed several deadlines for interest payments due to its bondholders. The stock exchanges fear that a collapse of the group could trigger a conflagration in the Chinese real estate sector.