The recent real estate industry crisis continues in China. Developer Sunshine 100 released a document stating its inability to pay its debts. 

Sunshine 100 could not pay the principal and interest of a $179 million bond, and the company defaulted on Dec. 5.

Earlier this year, Sunshine 100 first issued a warning in August, announcing that the company was having trouble repaying $50 million worth of bonds.

According to Chinese media, by the end of 2020, the company’s debt-to-assets ratio exceeded 17%, and its net debt ratio was as high as 187%. While the ratio of short-term debt to cash was only 0.24, showing that the pressure to pay a short-term obligation is tremendous. The liquidity gap was nearly 10 billion yuan (about $1.57 billion).

Last week, Evergrande announced that it had defaulted on $260 million in bonds. Since Evergrande’s debt crisis, Chinese property developers have faced a decline in industry prosperity. Many real estate companies like Kaisa and Fantasia have had trouble repaying their foreign debts.

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