Shimao follows Evergrande into default

The Intercontinental Shanghai Wonderland Hotel Following Evergrande, Kaisa and Sunac, Shimao Group failed to make a bond payment this Sunday July 3rd, 2022.

While interests have a grace period, principal payments do not, and this bond payment has both. The firm is now officially in default.

It is ranked among the top 10 real estate developers in China, handling large residential properties.

 

 

 

 

The contagion is not finished, and the Chinese government will have difficulty containing such a large bubble burst. Deemeed the largest bubble in teh world, the Chinese real estate’s downfall is expected to have a significant impact on the Chinese economy and the world’s growth.

 

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Written by Gontran de Quillacq

Gontran de Quillacq is an expert witness and a legal consultant. He is a recognized authority in options, trading, derivatives, structured products, portfolio management, hedge funds, mathematical finance, quantitative investment, strategy research and financial markets in general.

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