Investors await Evergrande’s overdue $148 mln payment amid contagion fears

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Nov 10 (Businesshala) – Uncertainty ahead of Wednesday’s deadline to make offshore bond coupon payments for cash-strapped China Evergrande Group is set to add to concerns about a deepening liquidity crisis in the Chinese property sector.

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Evergrande, the world’s most indebted developer, has been stumbling from deadline to deadline in recent weeks as it grapples with more than $300 billion in liabilities, $19 billion of which are international market bonds.

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Another overdue $148 million bond payment should be made on Wednesday and has coupon payments for more than $255 million on June 2023 and December 28 2025 bonds.

Beijing is urging government-owned firms and state-backed property developers to buy some of Evergrande’s assets to try to control the decline.

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Concerns over a possible drop from Evergrande rocked China’s property sector on Tuesday, with real estate companies closing bonds amid concerns that the crisis could spread to other markets.

The drop in bond prices comes hours after the US Federal Reserve warned that China’s turbulent asset sector could pose global risks.

China’s wealth crisis rocked global markets in September and October. There was a brief lull in mid-October when Beijing tried to reassure markets that the crisis would not be allowed to spiral out of control but concerns have resurfaced. (Written by Sumeet Chatterjee, Christopher Cushing and Ira Iosbashvili; Editing by Stephen Coates)

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