Is Evergrande TBTF?

What do you do when you're insolvent and headed for bankruptcy? Pursue TBTF status.

Bloomberg: Evergrande May Have Become Too Big to Fail, CreditSights Says
Evergrande Real Estate Group Ltd., the Chinese developer that’s been on a debt-fueled buying spree in the past year, may be too big to fail, according to research firm CreditSights.

A default by Evergrande, China’s largest developer by assets, could "wreak havoc among the banks and cause social unrest among its employees and customers," Singapore-based CreditSights said in an April 13 report.

“From a fundamental standpoint, we remain wary of the developer’s high leverage and shareholder-friendly strategies,” according to the report. “However, the company has grown so large that it may be too big to fail,” CreditSights said, explaining its decision to maintain a market-perform recommendation on the company’s series of bonds.

SCMP: Languishing in Hong Kong, property giant Evergrande taps share market in China
Hong Kong-listed Evergrande Real Estate, China’s second-largest residential developer has bought a stake in a Shanghai-listed developer and is circling a Shenzhen-listed real estate firm, in signs that the Chinese property major is exploring options in the country’s A-share market.

In a statement filed to the Shanghai Stock Exchange on Thursday, Langfang Development, a Langfang city-based state-owned developer, said Evergrande had acquired 5 per cent of its stake for 291 million yuan (HK$348 million).

...Meanwhile, mainland property news portal Guandian.cn reported, citing several sources, that Evergrande is taking over control of another state-backed developer, China Calxon Group, which is listed in Shenzhen.
Chinese coverage at EO: 恒大有意收购A股房企嘉凯城

Prior coverage:
From 2012: Citron says Evergrande is insolvent
From 2015: Short-Seller Investigated in Hong Kong
Evergrande's Potemkin Loans
Chinese Banks Bailout Evergrande

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