Evergrande Contagion Getting Worse?

Evergrande's inability to release its financials and subsequent suspension in trading is becoming a recurring theme among Chinese developers. Kaisa has also announced that it will not release its annual results on time and faces trading suspension as of 1 April. And it's not alone.

As of Monday, nine property developers have yet to announce the dates of their FY2021 board meetings, Nomura noted.

The likelihood of more developers being unable to release their results on time is rising, Nomura said, considering that listed firms need to announce their board meeting dates at least seven working days prior to their actual results dates – which are set to be 31 March by the latest.

This is happening despite Beijing’s recent efforts prop up the real estate sector.

The Chinese real estate bubble is deflating and Beijing is proving unable to stop it. Wealth destruction awaits.