Chinese property developer Evergrande has had many of its land lots confiscated by the Haikou authorities, according to The Epoch Times

The Haikou City Planning and Resources Department explained in a notice on Dec. 13 that it was due to expired real estate ownership certificates.

Haikou is the capital city of the province of Hainan, located in communist China. The department took over eight tracts of land: one belonged to Evergrande Hainan, six belonged to Haikou New World China Land, and one is owned by Haikou Bund City Real Estate Company.

China Business News reported that the six lots of Haikou New World China Land and the lot owned by Haikou Bund City all were previously bought over by Evergrande.

But as Evergrande is currently suffering from a liquidity crisis, Haikou authorities could seize the land without reparation.

On Dec. 14, the Guangdong officials told Evergrande’s regional companies that they would suspend all asset disposals under Evergrande. reported that Evergrande’s excess dollar debt cross-default of US$19.236 billion has started. Commentator Wang Jian said that Evergrande would go bankrupt if creditors demanded it to pay the US$19.2 billion.

According to Caixin, the international investment bank Goldman Sachs said that Evergrande’s off-balance-sheet debt could reach 100 million yuan. 

Since October 2021, the commercial papers of Evergrande Group and Evergrande Wealth are both past due, and Evergrande has been hit by debt collection storms many times, so the system-wide capital crisis has completely broken open.

The developer’s bonds and shares are trading near record lows after Fitch Ratings declared it a defaulter after it failed to meet its payments. 

The Epoch Times noted that Evergrande’s current debt is 2 trillion yuan, while Goldman Sachs estimates that the company’s off-balance-sheet debt is 100 million yuan.

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