On Jan. 21, Fitch Ratings downgraded property developer China Aoyuan Group Limited’s Long-Term Foreign-Currency Issuer Default Rating to Restricted Default from ‘C.’ Because Aoyuan won’t repay four dollar bonds and said, “Events of default will occur (or have occurred) under all other offshore financial indebtedness of the group,” 

Aoyuan is the latest Chinese developer to default on its loan obligations, owing to a cash shortage brought on by Chinese authorities’ crackdown on excessive borrowing in the industry. 

Property developer China Aoyuan Group on the evening of Jan. 19 said it wouldn’t make payments on four-dollar bonds. The principal of $188 million is due on the expiry date of Jan. 20, 2022, and the USD notes, which have a total principal amount of $500 million due on Jan. 23, 2022. Another principal is due in June 2023 of $200 million, and a principal value of $200 million is expected in June 2024.

China Aoyuan stated that it retains limited cash resources pending the overall debt restructuring to ensure it is fair to all creditors.

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