FirstFT: Evergrande’s plan to sell real estate services division collapses

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Chinese real estate developer Evergrande has said a potential sale of its real estate services unit has collapsed, increasing pressure on the group, which has only days to avoid a formal default on its debt.

An agreement to sell 50.1% of Evergrande Property Services Group to another developer Hopson Development Holdings for HK $ 20 billion ($ 2.6 billion) was terminated last week, the group said in documents tabled last night. Evergrande, the world’s most indebted real estate developer with more than $ 300 billion in liabilities, has been engulfed in a liquidity crunch that has raised global concerns over the deteriorating health of China’s vast real estate sector.

Shares in the group and its real estate services unit, also listed in Hong Kong, have been on hold for much of October since Evergrande announced the possible sale of the division. He requested the resumption of trading in his shares today, he added in the documents filed.

The escalation of the crisis led Evergrande to miss a series of interest payments to holders of international bonds. The initial missed payment on September 23 triggered a 30-day grace period, which ends this weekend, before a formal default is declared. Evergrande has rushed to sell assets, but many expect it will require one of the biggest restructurings in the Chinese company’s history.

Thanks for reading FirstFT Asia. Here is the rest of today’s news – Emily

Five other articles in the news

1. Jack Ma makes his first overseas trip since the regulator’s crackdown The founder of Alibaba is on vacation in Spain, according to two people familiar with his travel plans, marking the Chinese internet mogul’s first confirmed trip outside of China since clashing with financial regulators from China. country at the end of last year.

2. PayPal in talks with Pinterest over $ 45 billion buyout The online payments company is in talks to acquire the social media group in one of the biggest corporate buyouts of the year, said two people with direct knowledge of the matter. Pinterest shares jumped more than 13% to $ 63.31 on news of the talks.

3. End of an era with the resignation of the head of the Bundesbank Jens Weidmann has decided to step down after a decade as head of Germany’s central bank, just weeks after the country’s general election and shortly before a crucial decision on the future of euro area monetary policy.

4. Chinese imports of US natural gas to double Oil and gas giant Sinopec has struck two deals to purchase at least 4 million tonnes per year of liquefied natural gas from Venture Global’s proposed new export project in Plaquemines Parish, Louisiana, which is expected to go live in mid -2023.

5. Netflix employees organize walkout Yesterday, Netflix employees and activists left the company’s Los Angeles headquarters following transphobic comments by comedian Dave Chappelle in a Netflix special titled The closest. The walkout comes a day after Netflix announced that it had doubled its new subscribers from a year earlier, in part because of the success of Squid game.

Coronavirus digest

  • North KoreaChina trade has reached its highest level in more than a year, a sign that Pyongyang’s economy is suffering from the pandemic and international sanctions.

  • The American drug regulator authorized booster injections of Moderna and Johnson and Johnson’s Covid-19 vaccines, and will support a “mix-and-match” strategy.

  • Brazilian Lawmakers have recommended that President Jair Bolsonaro be criminally charged for his role in the coronavirus pandemic.

  • Global Supply Chain the problems could last “several months”, the head of the World Trade Organization told FT.

  • Opinion: Stable funding for less glamorous diseases would make the immunization system fairer and more resilient, writes Brooke Masters. (FT, Reuters)

The day to come

European Council summit EU leaders will begin their two-day meeting in Brussels today. The items on the agenda will be the European energy crisis and the bloc’s relations with China. A number of EU leaders are also set to face the Polish prime minister after challenging the supremacy of EU law. For the latest summit news, subscribe to our Europe Express newsletter.

Turkey Should Be “Gray List” By Global Finance Watchdog The Financial Action Task Force is expected to endorse the recommendations that Turkey should be subject to special surveillance for breaches of its approach to combating money laundering and terrorist financing.

Earnings Today is a big day for corporate profits. Among the reporting companies are Blackstone, AT&T, American Airlines and Southwest. In the UK, Barclays will release its third quarter results and Unilever will issue a trading statement.

Who do you think are the most influential women of 2021? Before our annual Women of the Year series, we collect your recommendations. Share your suggestions in the comments below this story.

What else do we read

COP26 is the real thing Despite the profound effect of human activity on the climate, emissions continue to increase. Will the upcoming United Nations climate summit in Glasgow change that? Doubtful, according to Martin Wolf. The energy revolution is achievable and affordable, he argues, but technically and politically difficult.

Leslie Hook, the FT’s environment correspondent, will be in Glasgow next month for COP26. If you have any questions you would like Leslie to answer, please email [email protected] and we will publish his answers.

China pushes back Hollywood advances Hollywood has spent years cultivating Chinese audiences, but with tightening censorship and unpredictable regulation, studios are finding it increasingly difficult to bring their biggest blockbusters to market – and they are starting to rethink their strategy.

Bitcoin ETFs Shouldn’t Exist The first US bitcoin exchange-traded fund may have risen on its first day of trading this week. But my colleague Robert Armstrong writes that “it is difficult to imagine a less attractive financial product”. He explains why in today’s Unhedged newsletter. Sign up here to have Rob’s weekday briefing delivered to your inbox.

Afghan women resist Taliban segregation Women’s lives are tightly circumscribed across Afghanistan as the Taliban reimpose the segregation that marked their rule in the 1990s, despite promises to protect rights. But many women, especially urban and educated women, seem reluctant to accept constraints.

Afghan women in a van

In recent weeks, small groups of women in Kabul, Herat and other cities have staged protests under the eyes of the armed Taliban, demanding their rights be restored and girls’ schools reopened © AFP via Getty Images

Motivating your team means letting go After the pandemic, managers must make the transition from the old world of command and control to a new system based much more on trust, says Jo Owen, author of Smart Work: The ultimate manual for remote and hybrid teams. It offers four ways to help teams regain their intrinsic motivation.

Thanks to the readers who responded to our survey yesterday. Seventy percent of you said that Washington lawmakers, rather than Wall Street, have the right approach to U.S. relations with China.

Books

Pilita Clark reviews three books that make the case for optimism in the face of impending environmental disaster. Among them: The Book of Hope written by Jane Goodall, the chimpanzee researcher who redefined the way we understand our fellow primates.

Remember that you can add FirstFT to myFT. You can also choose to receive a FirstFT push notification every morning on the app. Send your recommendations and comments to [email protected]

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