Moody's Downgrades Credit Ratings of Seven Chinese Real Estate Companies Simultaneously

[Image source=AP Yonhap News]

[Asia Economy Reporter Lee Chun-hee] As Chinese real estate giant Evergrande faces a liquidity crisis, international credit rating agency Moody's downgraded the credit ratings of seven Chinese real estate companies in just one day.

According to local Chinese media on the 19th, Moody's downgraded the credit ratings of seven real estate companies the previous day, including Ludi Holdings, Yangguangcheng, China Aoyuan, Zajiaoye, Shangsheng Holdings, Puli Real Estate, and Zhongliang Holdings.

As Evergrande's crisis continued, concerns about a domino effect arose, with high-end real estate specialist developer Huayangnian falling into default and several companies' credit ratings being lowered. However, it is unusual for multiple Chinese real estate companies' credit ratings to be downgraded simultaneously within a single day.

Moody's explained that the simultaneous downgrades of Chinese real estate companies' credit ratings reflect concerns that the future sales and financing prospects of these companies are not optimistic and that they may face liquidity crises.