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Tag: Evergrande

  • Evergrande’s Lenders Prepare Loan Loss Provisions and Rollovers

    Evergrande’s Lenders Prepare Loan Loss Provisions and Rollovers

    Several of China’s largest banks that issued loans to Evergrande are now reportedly considering taking on loan loss provisions and rolling over near-term obligations.

    Agricultural Bank of China – the nation’s third-largest lender by assets – has made some loan loss provisions for Evergrande-related exposure, according to a report citing unnamed sources.

    Separately, China Minsheng Banking Corp and China CITIC Bank Corp are prepared to roll over some of Evergrande’s near-term debt obligations.

    According to the report, Chinese bank exposure to Evergrande has decreased in the past year, such as a 10 billion yuan ($1.55 billion) reduction of Evergrande loan exposure to 30 billion yuan at Minsheng.

    There is a possibility that the government may intervene to manage an orderly collapse of Evergande, the report said, adding that regulators have completed related risk assessments.

    In a leaked 2020 document, Evergrande was believed to have liabilities with over 128 banks and 121 non-banking institutions. Although the document was written off as a fabrication by Evergrande, it is reportedly viewed with credibility amongst analysts.

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  • McDonald’s China opens its 300th store

    McDonald’s China opens its 300th store

    McDonald’s China has opened 300 new stores during the last year, pressing ahead with an expansion strategy tied to deals with property developers.

    The company has signed contracts with Country Garden and Evergrande Group, giving it access to more locations in new retail centres.

    And the company has also invested in digital technology with more than 75 per cent of its stores now offering kiosk ordering and payment facilities for customers. Using touchscreens, customers can select their purchases and pay by electronic means before collecting their food from a counter.

    McDonald’s China is also eyeing further expansion into tier 3 and 4 cities. By 2020, about 45 per cent of its anticipated 4500 outlets will be lower-tier locations.

  • Suning Holdings next move is smart retailing

    Suning Holdings next move is smart retailing

    China’s commercial conglomerate Suning Holdings Group is partnering with Hon Hai Technology Group in an “extensive retail co-operation” worth at least RMB50 billion (US$8 billion).

    Suning has also signed an RMB20 billion investment agreement with Evergrande Real Estate Group. Both moves are aimed at online/offline integration and expanding Suning’s smart-retail strategy.

    The property developer will help Suning develop its brick-and-mortar stores for personalised shopping experiences, and also help with its planned expansion of 5000 stores in the short term.

    The two companies will also explore smart home design, property management and other priorities.

    With Hon Hai, said to be the world’s largest contract electronics manufacturer, the co-operation focuses on the sharing of big-data analytics to optimise strategies and products for customised services. Hon Hai chairman Terry Gou says cross-industry co-operation should start from manufacturing to better satisfy customers’ needs.

    “By partnering with Evergrande, Suning’s advantages in innovative O2O physical stores will be strengthened more efficiently, and by working with Hon Hai we can create curated experiences through an open business model,” says Suning chairman Zhang Jindong.

    Suning ventured into e-commerce in 2010. By the third quarter this year it had 3748 stores in China and overseas. Revenue from its stores with online connections jumped by 35.27 per cent in the first three-quarters year on year. In the same period, its total transaction volume online reached RMB81 billion, a year-on-year rise of 55.64 per cent.