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Jan 30, 2024 · Evergrande has been on a slow burn to insolvency since at least 2020, when the Chinese government launched a program, known as the "three red lines," aimed at deleveraging the real estate...
Oct 26, 2023 · The Chinese property developer Evergrande owes more than $325bn (£269bn). That's more than Russia's entire national debt. For two years, the company has been lurching from crisis to crisis,...
Dec 20, 2021 · The "three red lines" are a set of debt thresholds that severely limit the ability of certain property developers to borrow. For decades the sector had seen uncontrolled borrowing, something...
Sep 20, 2021 · For the past several years, Chinese regulators have worked hard—if unsuccessfully—to reduce the economy’s overreliance on debt. As part of this regulatory push, regulators implemented what became known as the three red lines for property developers last year.
Apr 12, 2024 · These regulations, dubbed the “Three Red Lines,” imposed three barriers to accessing new debt: liabilities should not exceed 70 percent of assets, net debt should not be greater than 100 percent equity, and money reserves must be at least 100 percent of short-term debt.
- Benjamin O'brien
Apr 12, 2021 · Evergrande is falling further behind the vast majority of its largest peers in meeting stricter Chinese borrowing limits, raising refinancing risks for the country’s most indebted developer.
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Nov 22, 2021 · The Three Red Lines is a policy rolled out by Chinese regulators in 2020, limiting the amount a developer’s debt may increase every year to 15%. For each red line crossed, that amount drops 5%. The lines are: 1) the liability-to-asset ratio (excluding advance receipts) must be less than 70%, 2) the net-gearing ratio must be less than 100% ...
