Thursday, December 12, 2024
spot_img

Evergrande default threatens China contagion

Date:

Share post:

spot_img
spot_img

New Delhi, Oct 20 : The rescue of embattled Chinese property company Evergrande appears to have stalled, leaving the developer on the brink of default and threatening to unleash contagion through the countrys giant real estate sector, home prices and economy, The Guardian reported.

The problems enveloping Evergrande, which has eyewatering total debts of $305 billion, have hung over global financial markets in recent weeks and helped curb China’s post-pandemic recovery, the report said.

But the crisis could deepen further if Evergrande fails to meet a deadline of Saturday night to stump up a $83.5 million bond interest payment, triggering an official default.

Evergrande has already been given a 30-day grace period to make the repayment after missing the initial deadline back in September. It has since missed other key offshore, dollar-denominated bond payments worth another $193.3 million. The clock is now ticking on those debts as well, the report added.

The sprawling property-to-electric cars empire founded by former steel executive Xu Jiayin in the mid-90s has been scrambling to offload assets in order to pay back some of its loans. Its Chinese creditors are expected to be prioritised, with foreign investors at the back of the queue.

Shares in its main Hong Kong listing have lost 80 pert cent in the past year and have been suspended since October 4 pending an announcement on how it is going to be rescued.

But there were signs that the process has not been running to plan, raising the prospect that Beijing will be forced to engineer a dismantling of Evergrande, the country’s second-biggest developer, by absorbing most of it into existing state-owned enterprises, the report said. (IANS)

spot_img
spot_img

Related articles

Jharkhand villagers launch violent campaign against Maoists in West Singhbhum; 10 reported killed

Chaibasa, Dec 12: A violent campaign led by villagers against extremists, Maoists, and illegal traders has intensified in...

NIA arrests accused in Assam for terror links

Guwahati, Dec 12: The National Investigation Agency (NIA) arrested an accused from Assam’s Goalpara district and detained two...

SC imposes Rs 5 lakh costs on employer for taking wage and termination dispute to arbitration

New Delhi, Dec 12: The Supreme Court has imposed Rs 5 lakh costs on an employer for dragging...

Financial Intelligence Unit detects undisclosed income worth Rs 11,000 crore in 2024: Centre

New Delhi, Dec 12: The Financial Intelligence Unit-India (FIU-IND) detected undisclosed income worth nearly Rs 11,000 crore in...