Middle East

China’s Evergrande shares fall after missing new coupon payments

Fast news

The fate of Evergrande and other debt-bearing Chinese real estate companies has seized the financial markets in recent months in fear of a knock-on effect.

Evergrande has more than $ 300 billion in debt and is struggling to raise cash by selling its assets and shares to repay its suppliers and creditors. (Reuters)

Shares in the China Ever Grande Group fell as a confused real estate developer did not pay offshore coupons earlier this week.

Evergrande defaults to $ 19 billion in international bonds as of Thursday After missing the coupon payment deadline earlier this month, there was a new coupon payment worth $ 255 million in the June 2023 and 2025 notes on Tuesday.

Some bondholders holding two bonds have not yet received the coupon, according to three sources with knowledge of this matter. Both payments have a 30-day grace period.

By late Thursday morning, Evergrande shares had fallen 10.30 percent on the Hong Kong Stock Exchange.

read more: Debt-slumping Chinese real estate giant Evergande defaults for the first time

read more: Global economic output will exceed $ 100 trillion for the first time in 2022

No signs of payment

Bloomberg News previously reported that it was overdue with no signs of payment by a real estate developer.

Evergrande’s fall on Thursday wiped out profits from the beginning of the week when the market supported the company’s first progress in resuming construction work.

Hui Ka Yan, chairman of the company, vowed at a meeting on Sunday to offer 39,000 units of property in December, compared to less than 10,000 units each in the last three months.

The fate of Evergrande and other debt-bearing Chinese real estate companies has seized the financial markets in recent months in fear of a knock-on effect, with Beijing repeatedly seeking to reassure investors.

read more: How China’s Evergrande Liquidity Crisis Affects Global Markets

Source: TRT World and distributors

https://www.trtworld.com/business/china-s-evergrande-shares-fall-after-missing-new-coupon-payments-53134?utm_source=other&utm_medium=rss China’s Evergrande shares fall after missing new coupon payments

Show More
Back to top button