The world’s stock and bond markets are closely watching China Evergrande Group , a Chinese property developer that hasn’t made payments on some of its debt. If not resolved, it threatens to become the largest debt default by a company in Asia, which could jolt investor confidence across markets globally. Beijing seems reluctant to bail out the company but is taking steps to limit the damage. Here’s a quick look at the company, its problems and the possible fallout.
What is China’s Evergrande, and could it default?
Evergrande is an enormous—and heavily indebted—private-sector Chinese property developer and home builder that is close to defaulting on some of its billions of dollars in debt. The company missed a Sept. 23 deadline on an $83.5 million interest payment due on some of its dollar-denominated bonds. Evergrande avoided default by making the payment Oct. 21, as the end of a 30-day grace period neared, Chinese state media reported. The company bought some more time by making a second overdue interest payment, of $45 million, on dollar bonds later in October, The Wall Street Journal reported Oct. 29.
What Is China Evergrande, and Why Is Its Crisis Worrying Markets? Source link What Is China Evergrande, and Why Is Its Crisis Worrying Markets?