Evergrande Warns Of Non-Payment Over $260m Demand… Chinese media declaring Evergrande in Default

China Evergrande has received a demand under a $260 million guarantee obligation, the company said on Friday, admitting it may be unable to repay due to the liquidity crisis gripping China’s property sector.

Repayment dates under certain other agreements may be pulled forward if it was unable to meet the obligation, the company warned.

www.asiafinancial.com/china-evergrande-warns-of-non-payment-over-260m-demand

The recent default of property developer China Evergrande Group is an individual case and will pose little impact on the market, the country’s regulatory authorities said Friday.

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Evergrande’s problem was mainly caused by its own mismanagement and break-neck expansion, an official with the People’s Bank of China (PBOC) told the press when asked to comment on Evergrande’s recent default on guarantee obligation.

The overseas U.S. dollar bond market is quite mature with well-defined legal provisions and procedures on how to deal with relevant issues and its investors are good at risk identification, said the official. “The risks caused by a certain individual real estate firm in the short term will not undermine the fund-raising function of the market for the medium and long run.”

Housing sales, land purchases and financing have already returned to normal in China. Some Chinese property developers are beginning to buy back their overseas bonds, and investors are also starting to buy dollar bonds issued by Chinese property developers, according to the PBOC.

www.china.org.cn/business/2021-12/04/content_77910172.htm

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