On a smartphone or a computer screen, you can see the logos of Evergrande Group and Evergrande Real Estate Group from a Chinese real-estate company.
AllianceBernstein's Jenny Zeng warns that China's "highly troubled" real estate companies could collapse because Evergrande, the country's highly-indebted developer, is at the brink of default.
CNBC's "Street Signs Asia", Friday's co-head of Asia fixed Income at AllianceBernstein, warned that a possible Evergrande collapse could have a domino effect.
Zeng stated that there was a large number of offshore dollar market developers who are "implied to be extremely distressed." She added that these developers "can't last much longer" if they are unable to access refinancing for a prolonged time.
Evergrande is the world's largest property developer and is in danger of default due to its debts of over $300 billion. Evergrande's residential projects are still unfinished and banks have declined to lend new loans to them. Rating agencies have repeatedly downgraded Evergrande, citing their liquidity crunch.
Other Chinese property developers suffered financial losses due to the Chinese government's rules for reducing the cost of borrowing. These measures included limiting the company's debt relative to its cash flows, assets, and capital.