Evergrande Group Faces Further Losses Amidst Debt Crisis in H1 2023

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Evergrande Group, a major Chinese real estate company saddled with massive debt, has reported significant losses in the first half of this year.

Between January and June, the company incurred losses of 33 billion yuan (around $4.53 billion USD), a notable drop from the 66.4 billion yuan lost during the same period last year. The company's statement was published on the Hong Kong Stock Exchange website.

Once a leading property developer in China, Evergrande is now grappling with a debt crisis that has sent shockwaves through the world's second-largest economy.

According to the statement, the company's liabilities now stand at nearly $328 billion, down from almost $340 billion at the end of 2022.

In addition, Evergrande revealed a worsening cash situation, with only $556 million in cash assets compared to approximately $2 billion the previous year.

Evergrande first defaulted on its bonds in 2021, sparking fears of a global financial crisis.

Last summer, the company's failure to deliver promised housing projects led to protests and mortgage boycotts from Chinese homebuyers.

In response, the Beijing government has taken steps to bolster the real estate sector, including reducing mortgage rates, cutting red tape, and providing more loans to developers.

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