Evergrande dodges default, again
Evergrande has dodged default, again.
A Reuters source said Thursday (November 11) that some bondholders received overdue payments at the last minute.
That’s the third time in the last month that the ailing developer has narrowly avoided a default.
The world’s most indebted property firm has over $300 billion in liabilities.
If it goes under, investors fear a ripple of other collapses across China’s $5 trillion property sector.
The U.S. Federal Reserve has warned of risks to the global financial system.
Thursday’s news hasn’t done much to allay fears.
The focus now is on other cash-strapped developers with payments due.
Rival Kaisa Group has the most overseas debt of any Chinese developer bar Evergrande.
It’s already pleaded for help from creditors.
Now the question is whether Beijing will step in to tackle the sector’s woes.
Regulators and government think tanks have held meetings with developers in recent weeks.
That leads some to think that policies will be adjusted to help the sector avoid disaster.
Those hopes, and the Evergrande payment, helped stocks rally on Thursday.
An index of China’s biggest real-estate shares jumped almost 8%.