Shine trader limited reports:
Investors can breathe a sigh of relief.
China Evergrande, the world’s most indebted property developer, has avoided default — at least for now — after making a crucial interest payment at the 11th hour. The Chinese property developer’s cash crunch has raised concerns about the global financial impact of its imminent collapse.
The securities Times, a state-run newspaper, reported on Friday that Evergrande paid $83.5 million to bondholders a day before a 30-day grace period expired, making it one of the largest defaults in history. Pull back the edge of number one.
The news was greeted with cautious optimism and uncertainty about Evergrande’s long-term prospects. The company’s debt is still less than $300bn, or about 2 percent of China’s GDP. Evergrande closed 4.3 percent higher in Hong Kong.
“While this is clearly a positive step, people want to see a viable plan for the next payment,” said Herrick, a New York law firm representing some Chinese property companies.
“Said Scott Mollen, Ms. Feinstein’s partner. “The basic issues are still there and need to be addressed.”
China’s planned “demolition” of Evergrande Real Estate marks the end of its property boom
Beijing has sought to reassure the public this week, with senior officials coming out to say the risk of infection is manageable. Vice Premier Liu He of The State Council, Central Bank Governor Yi Gang, and other officials delivered speeches at Evergrande. It is rare for so many Chinese leaders to publicly discuss a company’s plight.
“I think, generally speaking, Evergrande Risk is an isolated case,” Mr. Yi told the annual G30 international banking conference on Wednesday. “First, we will try to prevent the spread to other real estate companies. Second, we will prevent contagion to other parts of the financial sector.”
Evergrande, founded in 1996, has reached the peak of China’s property boom as it has piled up debt. Evergrande founder Xu Jiayin briefly became China’s richest man in 2017, and in 2018 ever grande became the world’s most valuable real estate company.
Reprint indicated source：Spark Global Limited information