• News
    • Stocks
    • Banks and Finance
    • Companies
    • Crypto
    • Forex
  • Videos
  • Articles
    • Forex CRM
    • Crypto Payments
    • Trading
    • Crypto Exchange Business
    • Forex Business
    • Fintech
    • Liquidity
    • FinTech Awards
  • Liquidity Providers List
  • Crypto Payment Providers

Dark Theme

China Evergrande Averts Default Again but Debt Woes Mount

Nov 11, 2021

China Evergrande Averts Default Again but Debt Woes Mount

For the third time in less than a month, the world's most indebted property developer, China Evergrande Group, avoided a disruptive default at the last minute, according to a source on Thursday who said many bondholders had received missed coupon payments.

In recent weeks, the cash-strapped developer has stumbled from deadline to deadline as it deals with more than $300 billion in obligations, $19 billion of which are foreign market bonds.

Several investors have received interest payments from the three bond tranches that had a total of more than $148 million due last month, according to Chinese media source Cailianshe.

The payments were paid at the conclusion of a 30-day grace period that concluded on Wednesday, as did two additional offshore coupon payments that were due in late September and had grace periods that ended late last month.

Failure to pay would have resulted in the company's official default and triggered cross-default clauses for other Evergrande dollar notes, aggravating the world's second-largest economy's debt crisis, which has unsettled global markets.

"The short-term fix appears to be working, but there's still a long way to go until this problem is resolved. It is still early in the game "said a source familiar with the situation, alluding to Evergrande and refused to be identified since he did not have permission to speak to the media.

Evergrande is at the heart of a growing liquidity crunch in China's $5 trillion real estate market.

Despite the fact that the developer avoided default once more, the property sector's difficulties showed no signs of abating, with a mountain of debt due.

Evergrande has a total of $255 million in coupon payments due on December 28. It is being pressured by its domestic creditors, and a suffocating financial crunch has put a pall over hundreds of its residential projects.

Investors' attention is now turning to other cash-strapped companies, such as Kaisa Group, who have a slew of offshore payments due in the near future.

After Evergrande, Kaisa has the largest offshore debt of any Chinese developer, and last week asked for aid from creditors. It has about $59 million in coupon payments due on Thursday and Friday.

Kaisa, which made history in 2015 when it became China's first property business to default on an international bond, has already missed payments on several wealth management products at home.

Hard landing

While the Federal Reserve of the United States (Fed) cautioned this week that China's problematic property industry poses a worldwide concern, there were no strong signals that Beijing will intervene with a larger, national strategy to address the problem.

However, Chinese officials have moved to reassure investors and homeowners in recent weeks, claiming that risks are manageable and that excessive credit restriction by banks is being addressed.

In recent weeks, regulators and government think tanks have met with developers, and the market is anticipating some softening in loan and housing laws to avoid a harsh landing for the sector.

These expectations, along with Evergrande's payment, spurred a relief rally in Chinese property stocks, with an index of real estate A-shares rising over 8% and Hong Kong's Hang Seng Mainland Properties Index rising more than 3%.

At lunchtime, Evergrande's Hong Kong-listed shares were up 5.5 percent.

Bond prices for Chinese developers, which have been battered hard in recent weeks, have climbed even higher.

According to statistics from Duration Finance, the price of China Aoyuan Group's 5.88 percent March 2027 bond increased by more than 30% on the day, despite trading at extremely distressed levels of approximately 36 cents in the dollar. Bonds issued by Times China Holdings, Xinyuan Real Estate, Yuzhou Group Holdings, and Sunac China Holdings all saw a 10% increase.

An index of Asian high-yield bonds denominated in dollars increased by more than 1%, while Chinese high-yield corporate dollar spreads tightened from record highs.

Subscribe Our Newsletter

Gold Has Been a Disappointment This Year. What Could Change That
Gold Has Been a Disappointment This Year. What Could Change That

Since the beginning of this year, gold prices have settled at their lowest level since the spring of 2021, failing to demonstrate their usefulness as a haven investment. A crucial index that measures the performance of equities involved in the gold mining industry also hit a more than two-year low.

Banks and Finance
Netflix, HBO, Comcast: The Biggest Streaming Mistake of the Year
Netflix, HBO, Comcast: The Biggest Streaming Mistake of the Year

When it comes to understanding consumer behavior, streaming services ignore a significant detail. Let's find out which one.

Companies
Liquidity Provider

How Does the Cryptocurrency Exchange Business Work?
Unlike any other moment in contemporary history, the universal adoption of Bitcoin has been unparalleled. There has been a rapid growth in the number of firms that specialize in bitcoin.

discover
Credit Cards vs. Debit Cards

Tamta

Credit Cards vs. Debit Cards

In today's digital era, online transactions have become an integral part of our daily purchases. The use of cash has significantly declined as we increasingly rely on card-based transfers. Let's face it, carrying cash can be inconvenient.

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Tamta

    What Is Crypto Arbitrage Trading?

    https://liquidity-provider.com/app/uploads/2023/06/cover-1-800x540.jpg

    Tamta

    Guide to Craiyon: How To Use a New DALL-E Mini

    https://liquidity-provider.com/app/uploads/2023/06/cover-5-800x540.jpg

    Tamta

    Credit Cards vs. Debit Cards

    https://liquidity-provider.com/app/uploads/2023/06/cover-800x540.jpg

    Tamta

    Investing In Private Equity: What Should You Know?

    https://liquidity-provider.com/app/uploads/2023/05/cover-7-800x540.jpg

    Tamta

    What is Data Analytics? Techniques, Tools, Methodology, and More

    https://liquidity-provider.com/app/uploads/2023/05/cover-6-800x540.jpg

    Tamta

    Bitcoin Halving is Coming: What Does it Mean for the Crypto Market?

    https://liquidity-provider.com/app/uploads/2023/05/cover-4-800x540.jpg

    Tamta

    Crypto Token Supply From A to Z

    https://liquidity-provider.com/app/uploads/2023/05/cover-3-800x540.jpg

    Tamta

    What Is ChatGPT, And How Can You Use It?

    https://liquidity-provider.com/app/uploads/2023/05/cover-2-800x540.jpg

    Anton

    Trading on Autopilot: The Rise of Crypto Trading Bots

    https://liquidity-provider.com/app/uploads/2023/05/cover-1-800x540.jpg

    Tamta

    Crypto Investing vs. Crypto Trading: What’s The Difference?

    https://liquidity-provider.com/app/uploads/2023/04/cover-5-800x540.jpg

    Tamta

    Understanding Indexed Universal Life Insurance (IUL)

    https://liquidity-provider.com/app/uploads/2023/04/cover-4-800x540.jpg

    Tamta

    Best Investment Strategies For Beginners

    https://liquidity-provider.com/app/uploads/2023/04/image1-800x540.jpg

    Tamta

    Understanding Perpetual Futures: How Do They Work?

    https://liquidity-provider.com/app/uploads/2023/04/cover-3-800x540.jpg

    Tamta

    What Is A Bitcoin Stock-To-Flow Model? Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/04/cover-2-800x540.jpg

    Tamta

    Best Decentralized Crypto Exchanges In 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-1-800x540.jpg

    Tatma

    Best High-Yield Savings Accounts For March 2023

    https://liquidity-provider.com/app/uploads/2023/04/cover-800x540.jpg

    Tamta

    Crypto Trading For Beginners

    https://liquidity-provider.com/app/uploads/2023/03/cover-8-800x540.jpg

    Tamta

    How To Make Money With Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-7-800x540.jpg

    Tamta

    What Is A Candlestick Chart?

    https://liquidity-provider.com/app/uploads/2023/03/cover-6-800x540.jpg

    Constantine

    White Label Forex Software — Ultimate Guide on How to Choose The Best Industry Solution

    https://liquidity-provider.com/app/uploads/2023/03/cover-3-300x203.jpg

    Tamta

    Forex Trading: A Beginner’s Guide

    https://liquidity-provider.com/app/uploads/2023/03/cover-2-300x203.jpg

    Tamta

    How to Create a Cryptocurrency

    https://liquidity-provider.com/app/uploads/2023/03/cover-1-1-800x540.jpg

    Tamta

    Top Ten Richest People In The World, 2023

    https://liquidity-provider.com/app/uploads/2023/03/cover-4-1-300x203.jpg

    Constantine

    What’s at Stake? Here’s How to Avoid Scam Tokens

    https://liquidity-provider.com/app/uploads/2023/03/cover-5-300x203.jpg
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
    • Articles
      • Forex CRM
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy