Category Archives: Evergrande

China Evergrande will make crucial bond payment to avert looming default – reports

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The struggling property giant has wired $83.5m to creditors, Chinese media says, but deadlines loom for another $193m in payments

The troubled property company China Evergrande Group has come up with the money to pay a $83.5m bond interest payment that it missed in September, according to reports.

The company, which has debts of around $305bn, wired the $83.5m payment and noteholders will receive it before Saturday, China’s state-backed newspaper Securities Times said on Friday, citing relevant channels, according to Bloomberg.

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China’s Evergrande crisis: clock ticking as crucial debt default deadline looms

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A default by the property giant could have far-reaching consequences for China and global economy

The rescue of embattled Chinese property company Evergrande appears to have stalled, leaving the developer on the brink of default and threatening to unleash contagion through the country’s giant real estate sector, home prices and the economy.

The problems enveloping Evergrande, which has eyewatering total debts of $305bn, have hung over global financial markets in recent weeks and helped curb China’s post-pandemic recovery.

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China’s booming real estate market could spell trouble for the economy | George Magnus

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Housing activity accounts for 29% of GDP, but Evergrande’s debt crisis is sign that things could soon change

In China today, the buzz is all about how the government there too has stumbled into an energy crisis with widespread power cuts. Yet this and other supply shocks will eventually pass, while the $300bn (£218bn) of debt enveloping China’s second biggest property developer, Evergrande, is of greater significance. It suggests China’s long housing boom is over, and bodes badly for the increasingly troubled economy, with implications for the rest of the world too.

China’s real estate market has been called the most important sector in the world economy. Valued at about $55tn, it is now twice the size of its US equivalent, and four times larger than China’s GDP. Taking into account construction and other property-related goods and services, annual housing activity accounts for about 29% of China’s GDP, far above the 10%-20% typical of most developed nations.

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