Default Looms as Evergrande Tests China’s Real Estate Sector

cc Chorzinghuam 2, modified, https://commons.wikimedia.org/wiki/File:HK_%E9%87%91%E9%90%98_Admiralty_%E5%A4%8F%E6%85%A4%E9%81%93_Harcourt_Road_Gloucester_Road_China_Evergrande_Centre_September_2020_SS2_01.jpg

The clock is ticking for Evergrande, China’s distressed property developer, as evidence continues to mount that a comprehensive bailout by the authorities will not be forthcoming.

The developer, which is believed to have liabilities to the tune of $300 billion, missed its first coupon payment of $83.5 million on a $2 billion dollar-denominated bond on September 23. And though the company has missed other payments totaling $275 million since then, the true reckoning looms on Saturday October 23, when a 30-day grace period for the initial missed payment expires.

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