Evergrande, other property giants have huge off-balance sheet debt: JPMorgan

Photo: Scott Graham / Unsplash.com

Investment bank JPMorgan has estimated that troubled Chinese property giant Evergrande and many of its major rivals have billions of dollars worth of offbalance sheet debt that, once added on, ramp up their leverage ratios.

JPMorgan’s China and Hong Kong property analysts said the tactic is likely to have been used to help firms look like they were conforming with new borrowing cap rules introduced last year, but Evergrande’s case looks the most extreme.

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