Chinese developer Sunshine 100 said on Monday it had defaulted on a high-value bond over liquidity concerns, amid increased government control over the indebted sector.
The Hong Kong-listed consortium said it was unable to meet a payment of $ 179 million for a bond that matured on Sunday, along with interest.
The default was due to “liquidity problems due to the negative impact of various factors, including the macroeconomic environment and the real estate sector,” the company said in a stock message.
Sunshine 100 has struggled to honor its debts this year, and in August it also defaulted on a bond.
The company currently has $ 385 million in banknotes in circulation, according to data compiled by Bloomberg.
China’s real estate sector, key to the growth of the world’s second-largest economy, has stagnated in recent months after Beijing tightened home buying rules and imposed tough regulatory rules against speculation.
The measures have been a headache for large developers, especially China Evergrande, the second largest in the country.
Evergrande, which carries $ 300,000 million in debt, managed to avoid default but has bonds of $ 82.5 million due Monday, after a 30-day grace period, according to Bloomberg.
Another real estate company, Kaisa, said last week that it had not done a debt swap that would have given it time to buy back some of its bonds.
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