Evergrande misses new payment deadline – sources
China Evergrande looks to have missed another bond payment. That’s according to Reuters sources. They say the ailing property developer missed paying at least some of the $148 million due to overseas creditors on Monday (October 11). That’s its third miss in as many weeks, and expectations of any payment were always slim. The firm has been prioritizing domestic creditors. But the mounting fears of a messy collapse are now hammering the whole Chinese property sector. Bonds issued by rival Modern Land plunged by around a quarter on Monday (October 11). That after it asked investors to adjust one bond to avoid a potential default. One investor told Reuters it was a ‘disastrous day’, with even high-quality debt now tumbling. Property-related shares also fell, though Evergrande stock remains suspended ahead of promised news on its next steps. A lack of information adds to the worries. Investors say it’s still very unclear what Evergrande plans to do with regard to divestments and other measures. Some authorities in China aren’t waiting to find out. Harbin, in the northeast, has become one of the first cities to announce measures to support property developers and their projects.