Investors await Evergrande’s overdue $148 million payment amid contagion fears By Reuters

(Reuters) – The uncertainty forward of Wednesday’s deadline for cash-strapped China Evergrande Group to make an offshore bond coupon fee is about so as to add to considerations a couple of deepening liquidity disaster within the Chinese language property sector.

Evergrande, the world’s most indebted developer, has been stumbling from deadline to deadline in latest weeks because it grapples with greater than $300 billion in liabilities, $19 billion of that are worldwide market bonds.

One other overdue $148 million bond fee have to be made on Wednesday and it has coupon funds totalling greater than $255 million on its June 2023 and 2025 bonds on Dec. 28.

Beijing has been prodding government-owned corporations and state-backed property builders to buy a few of Evergrande’s belongings to attempt to management the autumn.

Worries over the potential fallout from Evergrande roiled China’s property sector on Tuesday, slamming the bonds https://www.reuters.com/world/china/chinas-state-council-held-meeting-with-property-developers-banks-source-2021-11-09 of actual property firms amid worries that the disaster might unfold to different markets.

The slides in bond costs got here simply hours after the U.S. Federal Reserve warned that China’s troubled property sector might pose international dangers.

China’s property woes rattled international markets in September and October. There was a short lull in mid-October after Beijing tried to reassure markets the disaster wouldn’t be allowed to spiral uncontrolled however considerations have resurfaced.