One more chanceProperty giant China Evergrande has seen its foundations crumble recently, so it’s putting in a few new support pillars. But has the damage already been done?
- Evergrande is going through a restructure that includes a new risk assessment team, as it grapples with the $260m it owes China’s central bank.
- There’s an $82.5m repayment deadline looming, which the firm has already warned it could miss. It’s the third time it’s waited till the last minute to pay its dues.
- It could be too late for damage control. Prices plummeted 20% on Monday.
Florian Klauer / Unsplash
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Teetering on a default tightropeChinese property developer Evergrande dodges its latest debt default at the last minute – but the market could still be on the brink of a crash.
- A last ditch payment helped Evergrande avoid the catastrophic default that most people expected, but we’re not out of the woods yet.
- A default would affect economies worldwide, and markets are wobbling – Bitcoin’s (BTCUSD) rally stalled yesterday and the S&P 500 (SPX) snapped its winning streak.
- The threat is far from over with another deadline coming up on December 28, and Chinese regulators are searching for a way to rescue the property giant.