Indebted property developer China Evergrande defaulted this week with hardly a ripple in markets as most institutions remained silent.

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  • Late Thursday, Fitch Ratings said Evergrande had not confirmed payment of its latest debt obligation, triggering a default.
  • S&P Global Ratings did not have a statement as of Friday afternoon, and referred CNBC to its report Tuesday that said “default looks inevitable for Evergrande.” Moody’s, another ratings agency, did not respond to a request for comment.
  • “We should have been calling this a technical default for a long time already, but nobody dared,” Alicia Garcia-Herrero, Natixis’ chief economist for Asia-Pacific, said Friday.
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BEIJING — Indebted property developer China Evergrande defaulted this week with hardly a ripple in markets as most institutions remained silent.

Late Thursday, Fitch Ratings said Evergrande had not confirmed payment of its latest debt obligation, triggering a default. The developer’s shares traded 1% lower Friday. The Shanghai composite dropped 0.2%.

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Evergrande’s problems came to light over the summer amid tight regulation on real estate as investors worried about spillover to China’s economy. The company has a total $300 billion in liabilities, with $19 billion in offshore U.S. dollar-denominated bonds — the most of any Chinese developer.

www.cnbc.com/2021/12/10/evergrande-slides-into-default-while-some-ratings-agencies-keep-quiet.html

 

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