Evergrande China is Severe! Problems Come Over and Over

<p>&nbsp;Shares in China's Evergrande plunged 24% on Monday, after it was reported to be unable to issue new debt in a sign that its restructuring plan is failing.</p><p><br /></p><p>The fall also dragged broader Chinese property shares down 2.5% earlier in the week.</p><p><br /></p><p>Evergrande in its latest statement said that it was unable to meet the eligibility criteria for new debt issuance due to an investigation into its subsidiary, Hengda Real Estate Group.</p><p><br /></p><p>This comes after the announcement at the end of last week that Evergrande has postponed the meeting of creditors scheduled for today and tomorrow.</p><p><br /></p><p><br /></p><p>The Chinese real estate giant tried to swap maturing debt for long-term notes but it didn't go according to plan.</p><p><br /></p><p>This indirectly affects efforts to restructure the company, coupled with the latest 'case' last week.</p><p><br /></p><p>Earlier, it was reported that the police had arrested several employees at its financial subsidiary, Evergrande Wealth Management.</p><p><br /></p><p>With these problems, the prospects for Evergrande's recovery are dimming and the crisis in China's real estate market is expected to continue, thus dragging down the country's economic growth.</p>