Communist China’s Real-estate Giant Skyfame Faces Debt Default

It is reported that Skyfame Realty, a well-known established real estate company in Guangzhou, may not be able to fulfill its obligations to its two USD bonds that are about to mature, which will lead to default of many related debts.

Skyfame Realty was founded in 1996 and reserve IPO on the Hong Kong Stock Exchange in 2006. It also acquired a company Hainan New Energy Co. Ltd from Evergrande and changed its name to Lvjing Holding. In 2019, Skyfame Realty’s sales reached tens of billions of Yuan. The two listed companies gave Skyfame Realty a foothold in the real estate market.

On June 13, Skyfame Realty’s subsidiary just signed a loan agreement to raise nearly 500 million Yuan for development and construction of real estate projects in Guangzhou. By the end of 2021, Skyfame Realty has a total loan of about 11.48 billion Yuan, of which short-term loans due within one year are about 6.78 billion Yuan.

At present, the company has only 1.33 billion Yuan in cash and 2.88 billion Yuan in restricted funds. According to statistics, in the second half of this year, nearly 50 Communist China’s real-estate developers’ overseas bonds will mature, and 12 of them will have a debt of more than 10 billion Yuan to pay. The Chinese Communist Party (CCP)’s suppression of private real-estate developer, caused capital chain rupture, leads to a large number of debt defaults. The real-estate industry crisis, accompanied by a political crisis, a financial crisis, and natural disasters, will eventually collapse the CCP’s economy.