Yet Another Ghost Town in China Shows Extent of Regional Debt Crisis
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Empty apartment developments stand in the city of Ordos, Inner Mongolia on Sept. 12, 2011. Photographer: Mark Ralston/AFP/Getty Images
China’s Ordos city, where towers that sprang from Inner Mongolian farmland now sit empty, is showing the hangover has just begun from a decade-long building boom.
Ordos City Huayan Investment Group Co., a developer whose chairman headed a group of livestock researchers, is at high risk of defaulting on 1.2 billion yuan ($194 million) of bonds if investors exercise an option to offload them in December, said Haitong Securities Co. and China Investment Securities Co. Also in the city, Inner Mongolia Hengda Highway Development Co. asked noteholders to defer rights to sell back private securities in April due to cash shortages, according to China International Capital Corp…
Yet Another Ghost Town in China Shows Extent of Regional Debt Crisis
