Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that the Yango Group of Fujian Province has a market value of RMB hundreds of billions. Its domestic and overseas debts exploded at the same time. On March 16, China Construction Bank issued an announcement that Yango’s RMB 600 million medium-term notes “20 Yango MTN001” missed their due date of March 15. The issuer, Yango Group, failed to pay the interest or principal in full on schedule, which constituted a breach. On the same day, the company’s controlling shareholder, Sunshine Group, announced that the principal and interest of the existing overseas bonds “YANGOG 12.5 02/20/22” (US$106 million) and “YANGOG 12.5 01/04/24” (US$300 million) defaulted. More defaults are expected in the next one-year timeframe since there are payments due every month. In the past month, Yango Group has also suffered a number of holdings being judicially frozen. After the thunderstorm in Yango, the company’s senior executives were in turmoil and many of them departed. Yango is a publicly traded company with a real estate business in over 100 cities across China. It ranks among the top 20 real estate companies in China.
Source: NetEase, March 17, 2022