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China preparing for Evergrande’s downfall

© Reuters. China Evergrande Centre sign seen in Hong Kong (China) September 23, 2021. REUTERS/Tyrone Siu

(Corrects typographical error in headline)

(Reuters) – Chinese authorities are asking local governments to prepare for the potential downfall of debt-ridden China Evergrande Group, the Wall Street Journal reported on Thursday, citing officials familiar with the discussion.

China’s second largest property developer has $83.5million in interest payments on Thursday for a $2B offshore bond. Next week, a $47.5M dollar-bond payment interest payment is due.

If Evergrande does not settle interest in the due time, both bonds will default.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.