Delayed results spell default for some Chinese developers

Auditor resignations plus delayed financial results are bad news for Hong Kong-listed developers.

An extraordinarily large surge in the number of Hong Kong-listed Chinese developers that have failed to report their financial results on time, means that some will probably default. Those most likely are firms that have delayed their annual results, and that have had their external auditors changed, experts suggest.

Since late last year, China’s property sector has suffered contagion from the credit crisis of China Evergrande Group, the world’s most indebted developer. In December, the Chinese firm admitted it was close to bankruptcy, as it struggled to manage US$300 billion of debt, as reported by FinanceAsia. On March 22, the Hong Kong-listed company announced it would be...

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