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Evergrande’s Hong Kong Buyers Panic as Firm Halts Risky Lending

May 19, 2022, 9:00 PM

Florence Mok, a new mother, thought she wouldn’t be able to get a mortgage for her HK$9 million ($1.1 million) dream apartment. When her family signed the papers, China Evergrande Group sales staff said not to worry. The developer’s financing arm offered them 90% leverage, no bank stress-test needed.

Now Mok’s suffering from the fallout of Evergrande’s debt crisis. With the cash-strapped company no longer willing to provide financing, her family can’t find a bank for a mortgage. They might lose the down payment and apartment.

Florence Mok, front second left, and other buyers of the Vertex hold protests signs on May 14.
Photographer: Bertha Wang/Bloomberg

The Moks are among 80 families who have protested and appealed to authorities ...