China's Property Sector Stalked by Evergrande Default Fears

Debt-saddled Chinese property firms took heavy fire in bond markets on Tuesday, after the poster child of the sector's woes, Evergrande Group, missed its third round of bond payments in as many weeks and others warned of defaults, Reuters reported. A wave of developers face payment deadlines before the end of the year and with Evergrande's fate looking increasingly bleak, fears are mounting of a wider crisis. Weary Evergrande bondholders still haven't received almost $150 million worth of coupon payments that had been due on Monday, although there was little surprise after the firm had skipped two other payments in recent weeks. Problems have already spread well beyond just Evergrande. Mid-sized rival Fantasia also missed a payment and Modern Land and Sinic Holdings are trying to delay deadlines that would still most likely be classed as a default by the main rating agencies. Refinitiv data shows there is at least $92.3 billion worth of Chinese property developers' bonds coming due next year. Read more.
Location