China Evergrande warns of further decline in real estate sales, tightening liquidity

September 14 (Reuters) – Cash-strapped developer China Evergrande Group (3333.HK) said on Tuesday that a significant drop in its real estate sales would continue this month amid concerns over its debt, which is likely to further deteriorate its liquidity and cash flow. .

The group is in talks with potential investors to sell some of its assets, but has so far made no “significant progress,” it said in a statement to the Hong Kong Stock Exchange,

The company blamed “ongoing negative media reports” for weakening investor confidence, leading to a further decline in sales in September.

Angry investors gathered around Evergrande’s headquarters in Shenzhen on Monday to demand that the company repay loans and financial products. Read more

The protest comes as the country’s most indebted developer, with liabilities of 1.97 trillion yuan ($ 305 billion), will be unable to repay investors and its debt problems could pose risks systemic issues for the Chinese financial system.

The company said Monday it was in the throes of “unprecedented hardship” but denied speculation it was threatened with bankruptcy.

Reporting by Miyoung Kim; Editing by Christopher Cushing and Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles.