The absence of any announcement by the Chinese group Evergrande of an interest payment of $ 83.5 million on a bond in dollars in deadline Thursday added to the uncertainty surrounding the problems of China’s leading real estate developer.
The most indebted real estate developer in the world, has not submitted any file to the stock exchange or public announcement of the coupon in circulation. Two of the holders of the banknote, which expires in March, told Bloomberg that they did not receive the allowances until 5pm yesterday.
and exceeds the total Dion Evergrande 300 billion dollars. The company struggled to pay its suppliers and warned investors it could default on its debt.
Evergrande has a grace period of 30 days to fulfill its obligations before declaring a default. Investors were preparing for the possibility of losing their stakes or getting a small portion of the face value in any possible renovation.
Earlier this week, in Regarding a separate interest payment on local bonds, Evergrande released a vague statement on the termination of a 232 million yuan ($ 36 million) coupon. But this deposit did not specify how much interest would be paid or when.
Evergrande’s shares and its bonds in dollars rose Thursday as trading resumed in Hong Kong after a holiday, helping to support the Chinese real estate firm’s broader gains after recent steep declines. But the continuing lack of information on interest on banknotes in dollars may raise questions about the sustainability of those increases.
The situation also dates back to April, another serious debt crisis in China, where lack of information on the situation regarding China Huarong Asset Management Co. has brought bonds down in dollars of that company and cast a shadow on the market in general.
As with Huarong, Evergrande’s overriding question was what role the government could play in any global corporate restructuring. It took nearly five months after Huarong said he was not in able to publish its 2020 results, before unveiling the state-led bailout plan for the troubled wealth manager it controls.
Meanwhile, financial regulators have asked Evergrande to focus on completing unfinished properties and paying retail investors, avoiding short-term defaults on bonds. in dollars, according to a person familiar with the matter. There is no indication that the officials have provided financial support to the company.
The Evergrande debt crisis is expected to slow China’s economic growth, but will likely have limited impact on the financial system of the world’s second largest economy.
Beijing is moving to take measures to prevent the crisis of the country’s second largest real estate operator, China Evergrande Group, from transforming in a Chinese “Lehman moment”, or the collapse of the American bank Lehman Brothers that triggered the global financial crisis, but some Chinese banks could be victims of Evergrande’s insolvency to pay its debts, which has begun to throw its weight on world markets.
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