No one thought that the tide of default of real estate enterprises came so rapidly. The latest default occurred a week ago. On August 11, sunshine 100 China (02608. HK) announced that the company failed to pay a 6.50% convertible bond with an amount of US $200 million due in 2021 on the maturity date, which will trigger the cross default clause of 13.0% preferred green paper with an amount of US $219.6 million due in 2022.
Earlier, a Sichuan real estate enterprise broke out a series of bond defaults. So far, 12 bonds of the enterprise have defaulted, with a total default amount of 10.262 billion yuan, and the total amount of principal and interest of debt that has not been repaid due has reached 15.997 billion yuan.
On July 25, a real estate enterprise had a commercial ticket overdue refusal event. Some suppliers and ticket holders gathered at the group headquarters of the company in Guangzhou to protect their rights on site, which opened a corner of the risk of commercial ticket explosion in the industry.
The anniversary of the three red lines has arrived, which means that it has been a year since the real estate enterprises tightened their belts. Now the big test has achieved preliminary results. From the current fundamentals, the hard life of small and medium-sized real estate enterprises has just begun.
A financial director of the top 20 real estate enterprises told the times weekly that the “three red lines” exacerbated the market differentiation, the head real estate enterprises continued to strengthen their advantages accumulated in the early stage, and the unlisted micro real estate enterprises were spared due to the lack of leverage and performance pressure. The small and medium-sized real estate enterprises sandwiched in the middle not only need to meet the demands of performance growth in the capital market, but also need to improve the debt level as soon as possible under the current financing and market pressure to adapt to the regulatory rules.
From high debt expansion to rational return, the waist real estate enterprises need to turn around for a period of time. In the middle of this adjustment period, there are frequent cash flow risks such as debt default.