Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

INVESTING

Investors brace for rough ride as Evergrande faces payment deadline

Published On :

HONG KONG (Reuters) – Investors were bracing for potential market turbulence on Wednesday as a bond coupon payment for China Evergrande Group comes due, giving the embattled property developer its next test in public markets.

Once the face of China’s frenzied building boom, Evergrande has now become the face of a crackdown on developers’ debts that has spurred volatility in global markets and left large and small investors sweating their exposure.

The company is due on Wednesday to make a $47.5 million bond interest payment on its 9.5% March 2024 dollar bond. While it does not have any more onshore or offshore bonds maturing this year, it must still make coupon payments for offshore bonds totalling $547.57 million by Dec. 28.

Evergrande’s troubles slammed global stock markets earlier this month.

In the weeks since, some global investors have shifted their focus to political wrangling in Washington over the U.S. debt ceiling and a rise in Treasury yields that has pressured stocks. [.N]

Any negative surprise by Evergrande could give stock market bears more ammunition.

With liabilities of $305 billion, Evergrande has sparked concerns its problems could spread through China’s financial system and reverberate around the world – a worry that has eased as damage has so far been concentrated in the property sector.

On Monday, China’s central bank vowed to protect consumers exposed to the housing market and injected more cash into the banking system. The Shenzhen government began investigating Evergrande’s wealth management unit, the clearest sign yet the authorities could move to contain contagion risks.

(Writing by Ira Iosebashvili; Editing by Sonya Hepinstall)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts