![]() Shares in EvergrandeProperty Services rose nearly 8% and relief spread to mainland property stocks listed in Hong Kong.Ĭountry Garden, China's largest developer, climbed 7%, Sunac China jumped 9% and Guangzhou R&F Properties ended 7.5% higher. Shares in Evergrande rose nearly 18% on Thursday after it resolved the coupon payment for one of its domestic, onshore bonds, though the stock is still down more than 80% this year. we think the retail investor nature of the wealth management products would be prioritised for social stability," said Ezien Hoo, credit analyst at OCBC Bank.įoreign investors, who hold paper issued by Evergrande's offshore entities, might find it harder to get paid as they had "lower bargaining power versus other lenders closer to the assets", he said. "Assuming this situation goes the way of a debt restructuring. There is mounting pressure on the company to act as the frustration of homebuyers and retail investors who have sunk their savings into its properties and products grows. ![]() Investors worry that the rot could spread to creditors including banks in China and abroad, though analysts have been downplaying the risk that a collapse would result in a "Lehman moment", or a systemic liquidity crunch. The company, China's second-biggest property developer, has $83.5 million in dollar-bond interest payments due on Thursday on a $2 billion offshore bond and a $47.5 million dollar-bond interest payment due next week.īoth bonds would default if Evergrande fails to settle the interest within 30 days of the scheduled payment dates.Ī company spokesperson did not immediately respond to request for comment on its payment obligation due on Thursday.Įvergrande, which epitomised the borrow-to-build business model and was once China's top-selling developer, ran into trouble over the past few months as Beijing tightened rules in its property sector to rein back debt levels and speculation.Īlso Read | Gucci bags and Dyson appliances: How Evergrande lured in thousands of retail investors ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |