Sun. Nov 28th, 2021

The uncertainty ahead of Wednesday’s deadline for China Evergrande Group to make a foreign bond coupon payment is likely to contribute to concerns about a deepening liquidity crisis in the Chinese real estate sector.

Evergrande, the world’s developer with the most debt, has stumbled from deadline to deadline in recent weeks, struggling with more than $ 300 billion in liabilities, of which $ 19 billion are international market effects.

Another $ 148 million overdue mortgage payment is due to be made on Wednesday, and it has coupon payments totaling more than $ 255 million on its June 2023 and 2025 bonds on December 28.

Beijing has urged state-owned companies and state-backed real estate developers to buy some of Evergrande’s assets to try to control the fall.

Concerns about the possible collapse of Evergrande ruined China’s real estate sector on Tuesday, hitting the effects of real estate companies amid concerns that the crisis could spread to other markets.

The drop in bond prices came just hours after the US Federal Reserve warned that China’s difficult real estate sector could pose global risks.

China’s property problems caused world markets to rage in September and October. There was a brief lull in mid-October after Beijing tried to reassure markets that the crisis would not be allowed to get out of control, but concerns resurfaced.

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *