(Bloomberg) — China Evergrande Group shares fell after the embattled developer completed about 71% of its sales target in the two months through October, offering its steepest discount in history that could squeeze margins.



a tall building: The flags of China, right, and the Hong Kong Special Administrative Region (HKSAR), second right, are flown near the China Evergrande Centre, left, in Hong Kong, China, on Friday, Sept. 25, 2020. China Evergrande Group is facing a crisis of confidence among creditors who've lent the world's most indebted developer more than $120 billion.


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The flags of China, right, and the Hong Kong Special Administrative Region (HKSAR), second right, are flown near the China Evergrande Centre, left, in Hong Kong, China, on Friday, Sept. 25, 2020. China Evergrande Group is facing a crisis of confidence among creditors who’ve lent the world’s most indebted developer more than $120 billion.

The shares fell as much as 2.7% after it said contracted sales were 142 billion yuan ($21 billion) between Sept. 1 and Oct. 8, according to an exchange filing Friday. It generated 173 billion yuan for the two months through October last year.

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The world’s most indebted developer is trying to cut debt by bolstering sales, offering steep discounts at 800 projects across the nation during the Golden Week holiday, traditionally a popular time for home-hunters to buy. With $120 billion in debt– of which at least $5.8 billion is due in the next two months — it is under pressure from investors and regulators to curb leverage.

”The latest strong sales performance, coupled with previous settlement with most of strategic investors for its listing restructuring and its upcoming two IPOs, should be largely to ease the concern about its default or liquidity risk,” said Raymond Cheng, a property analyst at CGS-CIMB Securities.

Read more about how Evergrande skirted its cash crunch

Evergrande is planning to conduct a secondary listing of its electric vehicle unit in China and spin off its services management unit.

Evergrande could sustain its price cuts throughout the year and squeeze gross margins to 24% compared with the consensus forecast of 27%, according to

The U.S. real estate market is topsy-turvy in the pandemic economy. There are fewer homes for sale than usual, and more competition. Prices are up in most markets, yet slipping in others. How do millennials, with their growing families and increasing housing needs, fit into this confusing picture?

A new survey by Point2, a real estate search site, asked 6,780 millennials (ages 25 to 40) about their buying plans. The results suggest the largest generation is woefully unprepared for homeownership.

While 74 percent of millennials surveyed indicated they wanted to buy a home with a year, about 88 percent of them didn’t have enough saved to make the average U.S. down payment, about $62,000. In fact, 14 percent reported no savings at all.

Roughly 40 percent estimated they’d need $10,000 or less to put down on a home. In reality, among the 100 largest U.S. cities, only in Detroit would $10,000 be enough for a standard 20 percent down payment on a median-priced home. In San Francisco, at the other end of the scale, the down payment required is more than 20 times than in Detroit, about $218,000.

Given that the typical U.S. household historically saves 8 percent of its income, millennials need to buckle down, if they can afford it, and save more. A possible glimmer of hope: Americans of all ages have begun to put some money away during the pandemic. In April the average savings rate catapulted to almost 34 percent of income, though it dropped to about 14 percent by August, according to the U.S. Department of Commerce.

This week’s chart, based on Point2’s survey, shows the top and bottom 10 cities among the 100 largest in the U.S., ranked by median home price, and how long it would take millennials to save for a down