Evergrande Crisis: A new period has ended and the Chinese bond markets collapsed again

China’s real estate bonds hit another demolition reel on Monday Evergrande appears to have defaulted on its third round of bond payments in three weeks, with rival Modern Land becoming the latest company to try to delay deadlines.

China’s high-yield bond markets have suffered again, such as the fear of contagion spreading rapidly in a $5 trillion sector and It drives a large part of the Chinese economy, continued to destroy trust.

Some foreign bond holders Chinese Evergrande Group Two people familiar with the matter said they had not received their interest payments by Monday’s deadline, Asian time.

The company, the largest real estate developer in ChinaIt has more than $300 billion in liabilities now at risk.

Other signs of stress included A secondary competitor, Modern Land, has asked investors to delay repayment of a $250 million bond due on October 25 for three months, in part to “avoid a potential default.”

The modern land title deed for the month of April 2023, with a voucher 9.8%, more than 25% per day, at 32.25 cents, according to the financial data provider Period financeWhile the company’s stock They fell more than 2%.

Qaisah group, Which was the first Chinese real estate company to ‘default’ in 2015, has also witnessed how some of their bonds have fallen to less than half their face value, While the projects of R&F Properties and Greenland Holdings, which have prestigious projects in global cities such as London, were sold on a large scale.

‘It’s a disastrous day’Clarence Tam of Avenue Asset Management in Hong Kong said, explaining how that is about equal Some of the supposedly safer “investment grade” companies have seen 20% of their bonds erased.

“We believe it Driven by the global flow of money. We are particularly concerned that local mortgage management will have a strong impact on developers’ cash flow,” he said, referring to the fear that people may stop making deposits for new homes.

JPMorgan analysts also highlighted this How international investors are now demanding the highest premium ever to buy or hold unwanted Chinese debt. “The risk of infection from Evergrande is now spreading to other issuers and sectors,” they said.

Harbin, the capital of northeastern Heilongjiang Province, has become one of the first Chinese cities to announce measures to support real estate developers And its projects that were shaken by the Evergrande crisis.

Troubled company and fears of infection sent shock waves in global markets and The company has already defaulted on its dollar bills with a combined value of $131 million, which matured on September 23 and 29.

Advisers to overseas bondholders said on Friday that I haven’t heard from Evergrande yet They are also demanding more information about their plan to divest some of the companies, worried about a possible forced sale that would eventually reduce them.

Evergrande stock has been delisted, as well as its Evergrande Property Services Group unit, since October 4, waiting for an announcement of a big deal.

(With information from Reuters)

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