In the past few days, the People's Bank of China has said spillover effects on the banking system from Evergrande's debt problems were controllable and that China's economy was "doing well".īonds from other Chinese developers gained on Tuesday including Modern Land's 2022 bonds which bounced over 8% to 40.250 cents on the dollar, Greenland which jumped 6-7 cents and Central China Real Estate's 2024 bonds which climbed 5% to 44.843 cents. Its bonds slumped as much as 13 cents on the dollar, or nearly 25%, on Tuesday, after Moody's slashed the firm's credit rating and immediately warned it could be cut again due to default worries. 16 and it plans to transfer funds for a coupon worth $35.85 million due Oct. Kaisa Group (1638.HK), which was the first Chinese firm to default back in 2015 said on Monday it had paid a coupon due Oct. A Sunac representative also declined to comment. The source was not authorised to speak to media and declined to be identified.
Sunac China (1918.HK), which has a $27.14 million payment due Tuesday, has paid its bondholders, a source with direct knowledge of the matter said. 23.īut the wider offshore bond market has responded positively after assuring comments from China central bank's and coupon payments by two other major developers.Īn index of China high-yield debt (.MERACYC), which is dominated by property developer issuers, has seen spreads tighten from last week's record levels to around 1,484 points on Tuesday. High-yield bonds issued by Chinese property developers have been hit especially hard although there have been some signs that markets are beginning to differentiate.Īn Evergrande bond due Mawill officially be in default if the company does not make good after a 30-day grace period for a missed coupon payment that had been due on Sept. The liquidity crisis at Evergrande has roiled global markets. A source said the company had also received guidance from the municipal government of the southern city of Guangzhou to put the purchase on hold at the end of August.
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