{"id":121716,"date":"2021-09-23T01:33:24","date_gmt":"2021-09-23T01:33:24","guid":{"rendered":"https:\/\/fin2me.com\/?p=121716"},"modified":"2021-09-23T01:33:24","modified_gmt":"2021-09-23T01:33:24","slug":"chinas-evergrande-faces-key-deadline-investors-await-outcome","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/chinas-evergrande-faces-key-deadline-investors-await-outcome\/","title":{"rendered":"China's Evergrande faces key deadline, investors await outcome"},"content":{"rendered":"

HONG KONG\/NEW YORK (Reuters) – China\u2019s embattled property developer Evergrande faced a Thursday deadline to pay interest on one of its dollar bonds, in a crucial moment for global investors worried that its malaise could spread beyond the country\u2019s property sector.<\/p>

An Evergrande sign is seen at the sales office for an under-construction luxury residential compound developed by China Evergrande Group in Beijing, China September 22, 2021. REUTERS\/Carlos Garcia Rawlins<\/figcaption>

Global markets reacted with relief on Wednesday when the People\u2019s Bank of China\u2019s injected 90 billion yuan ($13.9 billion) into the banking system and an Evergrande unit said it had \u201cresolved\u201d a coupon payment on an onshore bond.<\/p>\n

But it faces $83.5 million in dollar-bond interest payments due on Thursday on a $2 billion offshore bond. And more payments are coming due next week, with a $47.5 million dollar-bond interest payment due.<\/p>\n

Evergrande, China\u2019s biggest property developer, ran into trouble over the past few months as Beijing tightened regulations in its property sector to rein back too much debt and speculation. With $305 billion in liabilities, Evergrande has found itself struggling to meet its debt obligations and investors worry that the rot could spread to creditors including banks in China and abroad. Some analysts say it could take weeks for investors to have any clarity about how the situation will resolve.<\/p>\n

\u201cThe company could restructure its debts but continue in operation, or it could liquidate,\u201d wrote Paul Christopher, head of global market strategy at Wells Fargo Investment Institute. In either case, investors in the company\u2019s financial instruments likely would suffer some losses, he wrote.<\/p>\n

\u201cIn the event of a liquidation, however, Chinese and global investors could decide that the contagion could spread beyond China,\u201d he added.<\/p>\n

A group of Evergrande bondholders recently selected investment bank Moelis & Co and law firm Kirkland & Ellis as advisers on a potential restructuring of a tranche of bonds, two sources close to the matter previously said.<\/p>\n

The advice focuses on around $20 billion in outstanding offshore bonds in the event of non-payment, one of the sources said at the time.<\/p>\n

Analysts have been downplaying the risk that a collapse threatens a \u201cLehman moment\u201d, or liquidity crunch, which freezes the financial system and spreads globally.<\/p>\n

U.S. Federal Reserve Chair Jerome Powell said on Wednesday that Evergrande\u2019s problems seem particular to China and that he did not see a parallel with the U.S. corporate sector.<\/p>\n

\u201cIn terms of the implications for us, there\u2019s not a lot of direct United States exposure. The big Chinese banks are not tremendously exposed, but you would worry it would affect global financial conditions through global confidence channels and that kind of thing,\u201d Powell told reporters after the Fed\u2019s policy meeting.<\/p>\n

($1 = 6.4583 Chinese yuan renminbi)<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

HONG KONG\/NEW YORK (Reuters) – China\u2019s embattled property developer Evergrande faced a Thursday deadline to pay interest on one of its dollar bonds, in a […]<\/p>\n","protected":false},"author":3,"featured_media":121715,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nChina's Evergrande faces key deadline, investors await outcome - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/chinas-evergrande-faces-key-deadline-investors-await-outcome\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China's Evergrande faces key deadline, investors await outcome - Fin2me\" \/>\n<meta property=\"og:description\" content=\"HONG KONG\/NEW YORK (Reuters) – China\u2019s embattled property developer Evergrande faced a Thursday deadline to pay interest on one of its dollar bonds, in a [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/business\/chinas-evergrande-faces-key-deadline-investors-await-outcome\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-23T01:33:24+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/09\/Chinas-Evergrande-faces-key-deadline-investors-await-outcome.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/business\/chinas-evergrande-faces-key-deadline-investors-await-outcome\/\",\"url\":\"https:\/\/fin2me.com\/business\/chinas-evergrande-faces-key-deadline-investors-await-outcome\/\",\"name\":\"China's Evergrande faces key deadline, investors await outcome - 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