Evergrande Declines Further After S&P Says Default Is Likely

(Bloomberg) — China Evergrande Group slid deeper in equity and credit markets Tuesday, fueling concerns about broader contagion after S&P Global Ratings said the developer is on the brink of default.Most Read from BloombergThe distressed developer’s shares in Hong Kong dropped as much as 7% before finishing down just 0.4%, still settling near a 10-year closing low. Its 8.25% dollar bond due 2022 fell 0.3 cent to 24.9 cents, leaving it down some 75% since late May. The junk-rated company is the biggest issuer of high-yield notes in Asia.“We believe Beijing would only be compelled to step in if there is a far-reaching contagion causing multiple major developers to fail and posing systemic risks to the economy,” according to an S&P report dated Sept. 20. “Evergrande …

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