By Clare Jim
HONG KONG (Reuters) – China Evergrande Group has raised fresh warnings of default risks amid late payments to wealth management and trust products.
The real estate giant has been scrambling to raise funds it needs to pay lenders and suppliers, with regulators and financial markets worried that any crisis could ripple through China’s banking system and potentially trigger wider social unrest.
WHO IS EVERGRANDE?
Founded in 1996 by Chairman Hui Ka Yan in the southern city of Guangzhou, Evergrande accelerated its growth in the past decade to become China’s second-largest property developer with $110 billion in sales last year.
The company listed in Hong Kong in 2009, giving it more access to the capital and debt markets to grow its asset size to $355 billion today. It has more than 1,300 developments across the nation, many in lower-tier cities.
With national sales growth slowing in recent years, Evergrande has also been branching into businesses…