The crisis at Evergrande rattled the global markets and triggered a series of defaults within China's real estate sector. But, the hidden debt of local governments poses a much bigger threat to the Chinese economy. Palki Sharma tells you more about China's $8 trillion debt time bomb.

Gravitas: A $8 trillion debt time bomb that China hid

Modern&nbsp;Land&nbsp;reported a missed payment on Tuesday, the latest Chinese property developer to do so, adding to worries about spiralling effects of the debt crisis at behemoth China Evergrande Group and dragging on shares in the sector.

China's state planner is set to meet with property firms carrying large dollar-denominated debts later in the day to take stock of their total issuance volume and repayment capability, amid the mounting concerns about liquidity.

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Evergrande, which narrowly averted a costly default last week, is reeling under more than $300 million in liabilities and has a major payment deadline on Friday.

Modern&nbsp;Land&nbsp;(China) Co Ltd said in a filing that it had not repaid principal and interest on its 12.85 per cent&nbsp;senior notes that matured on Monday due to "unexpected liquidity issues".

<a href="https://www.wionews.com/world/evergrande-resumes-work-on-more-than-10-property-projects-423636">Also read |&nbsp;Evergrande resumes work on more than 10 property projects</a>

This follows a default by Fantasia Holdings Group on a maturing dollar bond in early October that heightened concerns in international debt markets, already roiled by worries over whether Evergrande would meet its obligations.

Developers are defaulting "one by one", said an investor with exposure to Chinese high-yield debt, who asked not to be named as he was not authorised to speak with media.

"The question is always, who's next?"

Shares of Chinese property shares extended losses, hurt also by concerns over plans to introduce a real estate tax. China's CSI 300 Real Estate Index fell 2.6 per cent, and the Hang Seng Mainland&nbsp;Properties Index slumped nearly 5 per cent.

<a href="https://www.wionews.com/world/wechat-blocks-china-evergrande-messaging-groups-some-users-say-417075">Also read |&nbsp;WeChat blocks China Evergrande messaging groups, some users say</a>

The prospect of contagion and more defaults have weighed on the sector in a major setback for investors.

Chinese Estates Holdings Ltd said it would book a loss of HK$288.37 million in the current financial year from its latest sale of bonds issued by Chinese property developer Kaisa Group Holdings Ltd.

Shares in China Evergrande Group's electric vehicle (EV) unit rose as much as 5.8&nbsp;per cent&nbsp;early on Tuesday, as the cash-strapped developer said it would prioritise the growth of its EV business, before reversing course to slump 3 per cent.

China Evergrande gave up early gains to fall 6 per cent.

Modern Land reported a missed payment on Tuesday, the latest Chinese property developer to do so, adding to worries about spiralling effects of the debt crisis at behemoth China Evergrande Group and dragging on shares in the sector.

Modern Land reported a missed payment on Tuesday, the latest Chinese property developer to do so, adding to worries about spiralling effects of the debt crisis at behemoth China Evergrande Group and dragging on shares in the sector. China's state planner is set to meet with property firms carrying large dollar-denominated debts later in the day to take stock of their total issuance volume and repayment capability, amid the mounting concerns about liquidity. Evergrande, which narrowly averted a costly default last week, is reeling under more than $300 million in liabilities and has a major payment deadline on Friday. Modern Land (China) Co Ltd said in a filing that it had not repaid principal and interest on its 12.85 per cent senior notes that matured on Monday due to "unexpected liquidity issues". Also read | Evergrande resumes work on more than 10 property projects This follows a default by Fantasia Holdings Group on a maturing dollar bond in early October that heightened concerns in international debt markets, already roiled by worries over whether Evergrande would meet its obligations. Developers are defaulting "one by one", said an investor with exposure to Chinese high-yield debt, who asked not to be named as he was not authorised to speak with media. "The question is always, who's next?" Shares of Chinese property shares extended losses, hurt also by concerns over plans to introduce a real estate tax. China's CSI 300 Real Estate Index fell 2.6 per cent, and the Hang Seng Mainland Properties Index slumped nearly 5 per cent. Also read | WeChat blocks China Evergrande messaging groups, some users say The prospect of contagion and more defaults have weighed on the sector in a major setback for investors. Chinese Estates Holdings Ltd said it would book a loss of HK$288.37 million in the current financial year from its latest sale of bonds issued by Chinese property developer Kaisa Group Holdings Ltd. Shares in China Evergrande Group's electric vehicle (EV) unit rose as much as 5.8 per cent early on Tuesday, as the cash-strapped developer said it would prioritise the growth of its EV business, before reversing course to slump 3 per cent. China Evergrande gave up early gains to fall 6 per cent.

Modern Land: Another Chinese property developer defaults, shares drop

As concerns continue to loom over China Evergrande group, the spillover effect of Chinese real estate companies' debt default risks to the financial industry is generally controllable, state media said. The comment was published in a Xinhua question and answer piece on the chinese economy, for which the news agency said it had interviewed "relevant departments" and "authoritative people".

Concerns continue to loom over Chinese Evergrande group

China's Evergrande&nbsp;on Sunday said that it had resumed work on more than 10 projects in six cities including Shenzhen. The statement comes after it appeared to avert default with a last-minute bond coupon payment last week.

Evergrande is a major real estate firm in China and carries USD 300 billion in debt. It has missed several bond interest payment deadlines recently and fears of default have kept global investors on edge. Since the real estate sector forms a major part of the Chinese economy, there are fears that Evergrande's default would spill into the global economy.

During late August, the company said that some projects were suspended because of delays in payment to suppliers and contractors.&nbsp;

<a href="https://www.wionews.com/business-economy/surprise-interest-payment-from-evergrande-boosts-global-markets-423047">Also read |&nbsp;Surprise interest payment from Evergrande boosts global markets</a>

On Sunday, it said in a post on its Wechat account that some of the projects resumed work and had entered the interior decoration stage while other buildings had recently finished construction.

The company further added that its efforts to guarantee construction would shore up market confidence.&nbsp;

On Friday, Evergrande's share price jumped more than four per cent in Hong Kong, though that came a day after a drop of more than 12 per cent sparked by its announcement that the planned sale of its property services unit had fallen through.

Though interest payment by Evergrande gave brief respite market watchers said it was unlikely that the company would be able to repay all interest and that the rebound was likely to be limited.

China's Evergrande on Sunday said that it had resumed work on more than 10 projects in six cities including Shenzhen. The statement comes after it appeared to avert default with a last-minute bond coupon payment last week.

China's Evergrande on Sunday said that it had resumed work on more than 10 projects in six cities including Shenzhen. The statement comes after it appeared to avert default with a last-minute bond coupon payment last week. Evergrande is a major real estate firm in China and carries USD 300 billion in debt. It has missed several bond interest payment deadlines recently and fears of default have kept global investors on edge. Since the real estate sector forms a major part of the Chinese economy, there are fears that Evergrande's default would spill into the global economy. During late August, the company said that some projects were suspended because of delays in payment to suppliers and contractors. Also read | Surprise interest payment from Evergrande boosts global markets On Sunday, it said in a post on its Wechat account that some of the projects resumed work and had entered the interior decoration stage while other buildings had recently finished construction. The company further added that its efforts to guarantee construction would shore up market confidence. On Friday, Evergrande's share price jumped more than four per cent in Hong Kong, though that came a day after a drop of more than 12 per cent sparked by its announcement that the planned sale of its property services unit had fallen through. Though interest payment by Evergrande gave brief respite market watchers said it was unlikely that the company would be able to repay all interest and that the rebound was likely to be limited.

Evergrande resumes work on more than 10 property projects

Stock markets across globe got a boost after the news of troubled Chinese real-estate firm Evergrande making&nbsp;a surprise offshore interest payment a day before the weekend deadline. Breach of the deadline would have seen Evergrande plunging into a formal default.

"Equity markets are back on the rise as investors shrug off their recent concerns," noted Geir Lode at investment manager Federated Hermes. He was quoted by AFP.

Evergrande is a major real estate firm in China and carries USD 300 billion&nbsp;in debt. It has missed several bond interest payment deadlines recently and fears of default has kept global investors on&nbsp;edge. Since real estate sector forms a major part of Chinese economy there are fears that Evergrande's default would spill into the global economy.

On Friday, Evergrande's share price jumped more than four percent in Hong Kong, though that came a day after a drop of more than 12 percent sparked by its announcement that the planned sale of its property services unit had fallen through.

Also Read | <a href="https://www.wionews.com/trending/harambe-the-gorillas-statue-stands-in-the-way-of-charging-bull-on-wall-street-422666">Harambe the gorilla's statue stands in the way of Charging Bull on Wall Street</a>

Hong Kong's benchmark Hang Seng index rose 0.4% and closed at 26,126.9 points. China's blue-chip CSI300 index closed at 0.6% higher, while the Shanghai Composite Index erased earlier gains to end the session 0.3% lower.

In Japan, The benchmark Nikkei 225 index added 0.34 percent or 96.27 points to 28,804.85, a weekly loss of 0.91 percent.

The broader Topix index edged up 0.07 percent or 1.42 points to 2,002.23. Over the week, it declined 1.07 percent.

Though interest payment by Evergrande gave brief respite market watchers said it was unlikely that the company would be able to repay all interest and that the rebound was likely to be limited.

(With inputs from agencies)

Stock markets across globe got a boost after the news of troubled Chinese real-estate firm Evergrande making a surprise offshore interest payment a day before the weekend deadline.

Stock markets across globe got a boost after the news of troubled Chinese real-estate firm Evergrande making a surprise offshore interest payment a day before the weekend deadline. Breach of the deadline would have seen Evergrande plunging into a formal default. "Equity markets are back on the rise as investors shrug off their recent concerns," noted Geir Lode at investment manager Federated Hermes. He was quoted by AFP. Evergrande is a major real estate firm in China and carries USD 300 billion in debt. It has missed several bond interest payment deadlines recently and fears of default has kept global investors on edge. Since real estate sector forms a major part of Chinese economy there are fears that Evergrande's default would spill into the global economy. On Friday, Evergrande's share price jumped more than four percent in Hong Kong, though that came a day after a drop of more than 12 percent sparked by its announcement that the planned sale of its property services unit had fallen through. Also Read | Harambe the gorilla's statue stands in the way of Charging Bull on Wall Street Hong Kong's benchmark Hang Seng index rose 0.4% and closed at 26,126.9 points. China's blue-chip CSI300 index closed at 0.6% higher, while the Shanghai Composite Index erased earlier gains to end the session 0.3% lower. In Japan, The benchmark Nikkei 225 index added 0.34 percent or 96.27 points to 28,804.85, a weekly loss of 0.91 percent. The broader Topix index edged up 0.07 percent or 1.42 points to 2,002.23. Over the week, it declined 1.07 percent. Though interest payment by Evergrande gave brief respite market watchers said it was unlikely that the company would be able to repay all interest and that the rebound was likely to be limited. (With inputs from agencies)

Surprise interest payment from Evergrande boosts global markets

Evergrande's last minute effort to avert default, the group has supplied funds to pay interest on a dollar bond, this has happened a day before the deadline.

China's Evergrande makes payment before deadline

Chinese property giant Evergrande's shares plunged Thursday after resuming trading in Hong Kong, with the failure of a unit sale deal deepening fears the indebted firm will collapse and send shockwaves through the world's second-largest economy.

Evergrande had suspended trading on October 4 pending an announcement on a "major transaction" as it struggled with some $300 billion of debt -- with investors worried about the potential fallout from its predicament.

On Thursday, shares dropped more than 10 per cent as it ended its two-week halt.

A deal worth HK$20.04 billion (US$2.58 billion) to sell a 50.1 per cent stake in its property services arm had fallen through, it said in a statement Wednesday, when it announced it would resume trading.

The buyer in talks with Evergrande was a unit under Hong Kong real estate firm Hopson Development Holdings, which said in a stock market filing it "regrets to announce that the vendor has failed to complete the sale".

Hopson shares rose five per cent on Thursday as Evergrande Property Services stock tumbled.

Evergrande said it would continue to implement measures to ease its liquidity issues, cautioning that "there is no guarantee that the group will be able to meet its financial obligations".

In a stark assessment of its current state of trading, Evergrande said it had sold only 405,000 square metres of real estate throughout September and October so far -- normally a peak period for sales.

Contracted property sales totalled just $571 million&nbsp;-- a near collapse on the 142 billion yuan it recorded in a similar period last year.

There has been no further progress on asset disposals, said the group, following the sale of a $1.5 billion stake in a regional Chinese bank in September.

The Shenzhen-based company has missed several payments on dollar-denominated bonds, and a 30-day grace period on an offshore note is up on Saturday.

Fears that Evergrande could collapse and send shockwaves through the Chinese economy have rattled buyers and markets -- even though Beijing has insisted any fallout would be containable.

"I don't think it will be a surprise to see a default (on the offshore note)," said Chen Long, partner at research firm Plenum.

"Actually, it's the other way around. It would be a surprise to see Evergrande not default."

Data this week showed China's economic growth slowed more than expected in the third quarter as the crackdown on the property sector and an energy crisis began to bite.

In a sign of the ongoing weakness, home sales by value slumped 16.9 percent year-on-year in September, following a 19.7 percent fall in August, AFP calculations based on official data showed.

China's new-home prices also fell for the first time in six years last month.

Several domestic property rivals have in recent weeks already defaulted on debts and have seen their ratings downgraded.

Hong Kong-listed Sinic Holdings became the latest to miss a payment, while mid-sized competitor Fantasia also failed to meet obligations in recent weeks.

Evergrande first listed in Hong Kong in 2009, raising HK$70.5 billion in its initial public offering -- making it China's largest private real estate company and founder Xu Jiayin the mainland's richest man at the time.

In an expansion spree, Xu -- also known as Hui Ka Yan in Cantonese -- bought the then-embattled Guangzhou football team in 2010, renaming it Guangzhou Evergrande and pouring money into world-class players and coaches.

The group diversified into various sectors, including bottled water and electric vehicles.

But Evergrande started to falter under the new "three red lines" imposed on developers in a state crackdown in August 2020 -- forcing the group to offload properties at increasingly steep discounts.

Chen said Evergrande did not start the contagion, noting that many developers had borrowed too much money and found themselves in trouble with tighter restrictions and a cooling housing market.

"Evergrande was not the first, and it's not going to be the last," he told AFP. "It just turned out to be the largest."

Chinese property giant Evergrande's shares plunged Thursday after resuming trading in Hong Kong, with the failure of a unit sale deal deepening fears the indebted firm will collapse and send shockwaves through the world's second-largest economy.

Chinese property giant Evergrande's shares plunged Thursday after resuming trading in Hong Kong, with the failure of a unit sale deal deepening fears the indebted firm will collapse and send shockwaves through the world's second-largest economy. Evergrande had suspended trading on October 4 pending an announcement on a "major transaction" as it struggled with some $300 billion of debt -- with investors worried about the potential fallout from its predicament. On Thursday, shares dropped more than 10 per cent as it ended its two-week halt. A deal worth HK$20.04 billion (US$2.58 billion) to sell a 50.1 per cent stake in its property services arm had fallen through, it said in a statement Wednesday, when it announced it would resume trading. The buyer in talks with Evergrande was a unit under Hong Kong real estate firm Hopson Development Holdings, which said in a stock market filing it "regrets to announce that the vendor has failed to complete the sale". Hopson shares rose five per cent on Thursday as Evergrande Property Services stock tumbled. Evergrande said it would continue to implement measures to ease its liquidity issues, cautioning that "there is no guarantee that the group will be able to meet its financial obligations". In a stark assessment of its current state of trading, Evergrande said it had sold only 405,000 square metres of real estate throughout September and October so far -- normally a peak period for sales. Contracted property sales totalled just $571 million -- a near collapse on the 142 billion yuan it recorded in a similar period last year. There has been no further progress on asset disposals, said the group, following the sale of a $1.5 billion stake in a regional Chinese bank in September. The Shenzhen-based company has missed several payments on dollar-denominated bonds, and a 30-day grace period on an offshore note is up on Saturday. Fears that Evergrande could collapse and send shockwaves through the Chinese economy have rattled buyers and markets -- even though Beijing has insisted any fallout would be containable. "I don't think it will be a surprise to see a default (on the offshore note)," said Chen Long, partner at research firm Plenum. "Actually, it's the other way around. It would be a surprise to see Evergrande not default." Data this week showed China's economic growth slowed more than expected in the third quarter as the crackdown on the property sector and an energy crisis began to bite. In a sign of the ongoing weakness, home sales by value slumped 16.9 percent year-on-year in September, following a 19.7 percent fall in August, AFP calculations based on official data showed. China's new-home prices also fell for the first time in six years last month. Several domestic property rivals have in recent weeks already defaulted on debts and have seen their ratings downgraded. Hong Kong-listed Sinic Holdings became the latest to miss a payment, while mid-sized competitor Fantasia also failed to meet obligations in recent weeks. Evergrande first listed in Hong Kong in 2009, raising HK$70.5 billion in its initial public offering -- making it China's largest private real estate company and founder Xu Jiayin the mainland's richest man at the time. In an expansion spree, Xu -- also known as Hui Ka Yan in Cantonese -- bought the then-embattled Guangzhou football team in 2010, renaming it Guangzhou Evergrande and pouring money into world-class players and coaches. The group diversified into various sectors, including bottled water and electric vehicles. But Evergrande started to falter under the new "three red lines" imposed on developers in a state crackdown in August 2020 -- forcing the group to offload properties at increasingly steep discounts. Chen said Evergrande did not start the contagion, noting that many developers had borrowed too much money and found themselves in trouble with tighter restrictions and a cooling housing market. "Evergrande was not the first, and it's not going to be the last," he told AFP. "It just turned out to be the largest."

Evergrande shares plunge amid fears over deepening crisis

China's massive debt bubble looks all set to pop. How will a financial meltdown in China affect the world? How will it impact your shopping cart? Palki Sharma tells you why a Chinese slowdown concerns all of us.

Gravitas: What would a Chinese recession look like?

As the crisis at Evergrande continues, 3 more real estate developers have defaulted on their debt obligations in China. But, that is just the tip of the iceberg. Local governments in China could be hiding a $4 trillion "debt bomb". Palki Sharma tells you more.

Gravitas: China's hidden $4 trillion debt bomb

165 countries owe at least $385 billion to China. But, the world barely knows about these loans. This "hidden debt" could trigger an economic crisis. Palki Sharma tells you how.

Gravitas: 165 countries owe at least $385 billion to China

China's major real estate players have been defaulting on their debt payments amid the Evergrande crisis.

Three more Chinese companies have now reportedly run out of cash. They&nbsp;include Sinic Holdings, China Properties Group and Fantasia - all three have defaulted just like Evergrande.&nbsp;

China has now unleashed a financial pandemic as the Chinese economy has now become like a house of cards with weak foundations. After Evergrande, China's economic boom has begun to unravel with its&nbsp;economy fuelled with debt.

Leading Chinese companies are facing bankruptcy with factories shut as there is no electricity and China's foreign creditors are showing signs of distress.

Evergrande is the world's most indebted real estate developer. It owes more than $300 billion even though it paid some of its Chinese creditors, however, it is clearly not good enough. The virus of bad debt has infected companies well beyond Evergrande.&nbsp;

Sinic Holdings defaulted today. It had to pay $246 million worth of bonds but failed just like Evergrande.&nbsp;Sinic Holdings is a real estate developer.

Last week another developer had defaulted - China Properties Group. It couldn't pay back $226 million worth of bonds. Earlier this month Fantasia Holdings defaulted on a $206 million payment.

These are the defaults from just this month and they represent just the tip of the iceberg. Major Chinese companies have been defaulting on their loans for a while even before the Evergrande crisis hit the country. &nbsp;

In the first half of 2021, China's corporate defaults hit $18 billion which is a record high. These were loans in the form of bonds.&nbsp;

A total of 25 companies defaulted and more than half were state-owned companies.&nbsp;In 2020, Chinese state firms had defaulted on more than $11 billion worth of debt as they couldn't pay back&nbsp;on time. It was the largest ever default by state-run companies in China.

State-run companies are doing worse than the private sector in China. In 2020, they accounted for 51 per cent of all defaults in the country. Chinese companies which were earlier considered to be safe have been failing to repay loans.

Last year, 82 per cent of Chinese bonds with an investment-grade rating defaulted as companies could not repay the money. It included bonds from both private and public enterprises.&nbsp;

Their bonds were rated "double A+" which meant the company was financially sound and had enough money to pay its debt and the risk of default was apparently low, however, 82 per cent of "double A+" bonds failed.&nbsp;

There is a dangerous debt bubble in China and it is proving to be a ticking time bomb which the Chinese officials have tried to hide. China's overall debt now stands at well over 270 per cent of its GDP. &nbsp;

China's outstanding foreign debt reached $2.4 trillion last year. The crisis has been made worse with "hidden debts" which no one knows about like the borrowings by local governments which lack transparency.&nbsp;The state is the biggest borrower in China as local governments depend on off the books borrowing. In 2018, Standard and Poor's had estimated that hidden government debt could be well over $4 trillion in the country.&nbsp;

China had tried to clean its house quietly but the defaults have brought the truth out as it struggles to put the debt genie back in the bottle.

China's major real estate players have been defaulting on their debt payments amid the Evergrande crisis. Three more Chinese companies have now reportedly run out of cash.

China's major real estate players have been defaulting on their debt payments amid the Evergrande crisis. Three more Chinese companies have now reportedly run out of cash. They include Sinic Holdings, China Properties Group and Fantasia - all three have defaulted just like Evergrande. China has now unleashed a financial pandemic as the Chinese economy has now become like a house of cards with weak foundations. After Evergrande, China's economic boom has begun to unravel with its economy fuelled with debt. Leading Chinese companies are facing bankruptcy with factories shut as there is no electricity and China's foreign creditors are showing signs of distress. Evergrande is the world's most indebted real estate developer. It owes more than $300 billion even though it paid some of its Chinese creditors, however, it is clearly not good enough. The virus of bad debt has infected companies well beyond Evergrande. Sinic Holdings defaulted today. It had to pay $246 million worth of bonds but failed just like Evergrande. Sinic Holdings is a real estate developer. Last week another developer had defaulted - China Properties Group. It couldn't pay back $226 million worth of bonds. Earlier this month Fantasia Holdings defaulted on a $206 million payment. These are the defaults from just this month and they represent just the tip of the iceberg. Major Chinese companies have been defaulting on their loans for a while even before the Evergrande crisis hit the country. In the first half of 2021, China's corporate defaults hit $18 billion which is a record high. These were loans in the form of bonds. A total of 25 companies defaulted and more than half were state-owned companies. In 2020, Chinese state firms had defaulted on more than $11 billion worth of debt as they couldn't pay back on time. It was the largest ever default by state-run companies in China. State-run companies are doing worse than the private sector in China. In 2020, they accounted for 51 per cent of all defaults in the country. Chinese companies which were earlier considered to be safe have been failing to repay loans. Last year, 82 per cent of Chinese bonds with an investment-grade rating defaulted as companies could not repay the money. It included bonds from both private and public enterprises. Their bonds were rated "double A+" which meant the company was financially sound and had enough money to pay its debt and the risk of default was apparently low, however, 82 per cent of "double A+" bonds failed. There is a dangerous debt bubble in China and it is proving to be a ticking time bomb which the Chinese officials have tried to hide. China's overall debt now stands at well over 270 per cent of its GDP. China's outstanding foreign debt reached $2.4 trillion last year. The crisis has been made worse with "hidden debts" which no one knows about like the borrowings by local governments which lack transparency. The state is the biggest borrower in China as local governments depend on off the books borrowing. In 2018, Standard and Poor's had estimated that hidden government debt could be well over $4 trillion in the country. China had tried to clean its house quietly but the defaults have brought the truth out as it struggles to put the debt genie back in the bottle.

Chinese companies default amid rising debt bubble

Evergrande owes more than 300 billion dollars to its creditors in China and around the world. The China central bank is calling it an 'individual case', ignoring the fact that millions could lose money as the real estate giant stares at bankruptcy.

'Risks from Evergrande is controllable,' China breaks silence on crisis

China's central bank on Friday broke its silence over Evergrande's debt troubles as it said that the risk of spillover from the property giant to the financial sector was "controllable," state media reported.

Local authorities are "carrying out risk disposal and resolution work in accordance with the principles of rule of law and marketisation," People’s Bank of China official Zou Lan said at a briefing, according to an outlet of the Xinhua state news agency.

Zou's comments came amid growing concern that the cash crunch at Evergrande, which is struggling with more than $300 billion in liabilities, could lead to contagion for the Chinese economy.

<a href="https://www.wionews.com/business-economy/evergrande-investors-in-dark-as-no-news-on-interest-payment-emerges-415591">Also read |&nbsp;Evergrande investors in dark as no news on interest payment emerges</a>

Evergrande's liabilities make it the most indebted property firm in the world. The debts stretch into hundreds of billions of dollars, which makes it equal to 2 per cent of Chinese GDP.&nbsp;

Shares in Evergrande have plunged 80 per cent so far this year, while its property services unit has dropped 43 per cent as the group scrambles to raise funds to pay its many lenders and suppliers.

"In recent years, the company has been poorly managed, and was unable to operate cautiously in accordance with changes in the market situation," Zou said.&nbsp;

<a href="https://www.wionews.com/business-economy/hong-kong-stock-exchange-halts-trading-of-evergrande-shares-418036">Also read |&nbsp;Hong Kong Stock Exchange halts trading of Evergrande shares</a>

He added, "Instead, it blindly diversified and expanded, causing the serious deterioration of operating and financial indicators, and eventually an explosion of risk."

China's central bank on Friday broke its silence over Evergrande's debt troubles as it said that the risk of spillover from the property giant to the financial sector was "controllable," state media reported.

China's central bank on Friday broke its silence over Evergrande's debt troubles as it said that the risk of spillover from the property giant to the financial sector was "controllable," state media reported. Local authorities are "carrying out risk disposal and resolution work in accordance with the principles of rule of law and marketisation," People’s Bank of China official Zou Lan said at a briefing, according to an outlet of the Xinhua state news agency. Zou's comments came amid growing concern that the cash crunch at Evergrande, which is struggling with more than $300 billion in liabilities, could lead to contagion for the Chinese economy. Also read | Evergrande investors in dark as no news on interest payment emerges Evergrande's liabilities make it the most indebted property firm in the world. The debts stretch into hundreds of billions of dollars, which makes it equal to 2 per cent of Chinese GDP. Shares in Evergrande have plunged 80 per cent so far this year, while its property services unit has dropped 43 per cent as the group scrambles to raise funds to pay its many lenders and suppliers. "In recent years, the company has been poorly managed, and was unable to operate cautiously in accordance with changes in the market situation," Zou said. Also read | Hong Kong Stock Exchange halts trading of Evergrande shares He added, "Instead, it blindly diversified and expanded, causing the serious deterioration of operating and financial indicators, and eventually an explosion of risk."

Evergrande risks 'controllable', says China's central bank

China is in a crackdown mode. From tech to education to real-estate, even gaming has not escaped the reach of the Communist Party of China (CCP). Though the entire and clearest picture as to why the state has resorted to such measures is yet to fully come to light, media reports are rife with claims from experts around the world who say that this is an attempt by the Chinese state to rein in 'out of control' sectors and assert its primacy in China's internal affairs.

Billions of dollars have been wiped out from the wealth of Chinese business tycoons like Jack Ma and their companies. The crackdown in many sectors has investors, both within and outside China, worrying about their money stuck in Chinese financial system. The government, till now, appears in no mood to stop.

But when you play with economy too much, the game comes back to bite you as it has been already seen in the Mao era.

In this particular example, Mao did not play with economy as much as he apparently satisfied his urge to show the country that he is the man who can successfully implement sweeping reforms.

The hasty, unscientific decision

Mao Zedong in his Great Leap Forward in the 1950s, announced major, sweeping campaigns with an aim to modernise China and improve Chinese life. It was viewed that sparrows were an obstacle to development as they ate foodgrains.

In 1958, Mao appealed the Chinese to undertake a massive campaign to eliminate the bird that in his view was keeping China from fully achieving its potential.

Also Read | <a href="https://www.wionews.com/opinions-blogs/chinas-evergrande-crisis-a-global-financial-crisis-in-the-making-414669">China's Evergrande crisis: A global financial crisis in the making</a>

Large number of people were mobilised for this. They destroyed sparrow nests, shot the birds down from the sky, set up traps, even beat drums to stop sparrows from landing so that they would die by exhaustion. The scale of this operation was massive.

Exact numbers are not known but even if it is considered that one person killed one sparrow, it would come to more than 600 million birds having been killed!

The effects of such a hasty and unscientific decision were apparent immediately in the following year.

Sparrows did not just eat foodgrains. They also ate insects that destroyed the crops. As sparrows effectively vanished from the Chinese skies, it caused massive increase in the number of insects like locusts who brought devastation to Chinese agriculture. With its natural predator gone, the insects were free to destroy crops at will.

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The result was death of millions of Chinese people due to shortage of food or other domino effects that had killing of sparrows as their cause. Official Chinese estimates say that 15 million people died. But some scholars say that the number was between 45 and 78 million.

Current crackdown similar to Mao's?

Chinese President Xi Jinping's crackdown may have come at a time when China is not a primitive nation but one capable of challenging reigning superpower, but effects of the sweeping decisions are more than apparent.

Take <a href="https://www.wionews.com/opinions-blogs/chinas-evergrande-crisis-a-global-financial-crisis-in-the-making-414669">Evergrande crisis</a> for example.

The prominent real estate group in China is tottering on the brink of collapse. It has a debt upwards of USD 300 billion, far greater than the company's actual value. Evergrande failed to pay interest to bondholders at least two times recently. This has sent a major scare among investors worldwide.

Also Read | <a href="https://www.wionews.com/business-economy/evergrande-investors-in-dark-as-no-news-on-interest-payment-emerges-415591">Evergrande investors in dark as no news on interest payment emerges</a>

The recent warning bells from China's real estate sector followed country's crackdown on excessive borrowing by real estate companies. Though the intention may be to discipline the sector, collapse of a major firm can have a disastrous effect across Chinese economy and have a spillover in global economy. The crackdown is already causing loan losses at banks and pain in credit markets. They are wary eyes on the fate of Evergrande.

Real estate sector forms a quarter of China's economy. A major rumble in this sector can shake the economy that invests heavily in US economy. It is too well known that when US economy sneezes, global markets go down with high fever.

Chinese way of decision-making may necessitate an iron fist and sweeping decisions. But will China make the same mistake twice is something that is being actively observed.

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

China is in a crackdown mode. From tech to education to real-estate, even gaming has not escaped the reach of the Communist Party of China (CCP). Though the entire and clearest picture as to why the state has resorted to such measures is yet to fully come to light, media reports are rife with claims from experts around the world who say that this is an attempt by the Chinese state to rein in 'out of control' sectors and assert its primacy in China's internal affairs.

China is in a crackdown mode. From tech to education to real-estate, even gaming has not escaped the reach of the Communist Party of China (CCP). Though the entire and clearest picture as to why the state has resorted to such measures is yet to fully come to light, media reports are rife with claims from experts around the world who say that this is an attempt by the Chinese state to rein in 'out of control' sectors and assert its primacy in China's internal affairs. Billions of dollars have been wiped out from the wealth of Chinese business tycoons like Jack Ma and their companies. The crackdown in many sectors has investors, both within and outside China, worrying about their money stuck in Chinese financial system. The government, till now, appears in no mood to stop. But when you play with economy too much, the game comes back to bite you as it has been already seen in the Mao era. In this particular example, Mao did not play with economy as much as he apparently satisfied his urge to show the country that he is the man who can successfully implement sweeping reforms. The hasty, unscientific decision Mao Zedong in his Great Leap Forward in the 1950s, announced major, sweeping campaigns with an aim to modernise China and improve Chinese life. It was viewed that sparrows were an obstacle to development as they ate foodgrains. In 1958, Mao appealed the Chinese to undertake a massive campaign to eliminate the bird that in his view was keeping China from fully achieving its potential. Also Read | China's Evergrande crisis: A global financial crisis in the making Large number of people were mobilised for this. They destroyed sparrow nests, shot the birds down from the sky, set up traps, even beat drums to stop sparrows from landing so that they would die by exhaustion. The scale of this operation was massive. Exact numbers are not known but even if it is considered that one person killed one sparrow, it would come to more than 600 million birds having been killed! The effects of such a hasty and unscientific decision were apparent immediately in the following year. Sparrows did not just eat foodgrains. They also ate insects that destroyed the crops. As sparrows effectively vanished from the Chinese skies, it caused massive increase in the number of insects like locusts who brought devastation to Chinese agriculture. With its natural predator gone, the insects were free to destroy crops at will. Also Read | Hong Kong Stock Exchange halts trading of Evergrande shares The result was death of millions of Chinese people due to shortage of food or other domino effects that had killing of sparrows as their cause. Official Chinese estimates say that 15 million people died. But some scholars say that the number was between 45 and 78 million. Current crackdown similar to Mao's? Chinese President Xi Jinping's crackdown may have come at a time when China is not a primitive nation but one capable of challenging reigning superpower, but effects of the sweeping decisions are more than apparent. Take Evergrande crisis for example. The prominent real estate group in China is tottering on the brink of collapse. It has a debt upwards of USD 300 billion, far greater than the company's actual value. Evergrande failed to pay interest to bondholders at least two times recently. This has sent a major scare among investors worldwide. Also Read | Evergrande investors in dark as no news on interest payment emerges The recent warning bells from China's real estate sector followed country's crackdown on excessive borrowing by real estate companies. Though the intention may be to discipline the sector, collapse of a major firm can have a disastrous effect across Chinese economy and have a spillover in global economy. The crackdown is already causing loan losses at banks and pain in credit markets. They are wary eyes on the fate of Evergrande. Real estate sector forms a quarter of China's economy. A major rumble in this sector can shake the economy that invests heavily in US economy. It is too well known that when US economy sneezes, global markets go down with high fever. Chinese way of decision-making may necessitate an iron fist and sweeping decisions. But will China make the same mistake twice is something that is being actively observed. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Opinion | Is China's Xi Jinping repeating Mao's mistake?

Evergrande groups offshore bondholders are now concerned that it is now close to defaulting on debt payments and wants more clarity and transparency.

World Business Watch: Evergrande woes hit China property bonds

Another Chinese homebuilder has hit financial trouble after it missed payments on debt obligations, adding to worries over the country's property sector as embattled giant China Evergrande teeters on the brink of collapse.

Fears of contagion through the Chinese economy have grown as Evergrande, the most indebted of the country's private homebuilders, struggles with more than $300 billion in liabilities and heads towards a massive restructuring.

Fantasia Holdings failed to repay a $205.7 million note Monday, the Shenzhen-based company said in a statement.

This came as property management firm Country Garden Services Holdings added that a unit of Fantasia had missed repayment on a 700 million yuan ($108 million) loan, saying it was likely Fantasia would default.

The news comes as investors await news from Evergrande after it suspended trading of its shares Monday pending an announcement on a "major transaction", with reports saying Hong Kong real estate firm Hopson Development Holdings planned to buy a 51 percent stake in its property services arm.

While Fantasia is a smaller player in the market than Evergrande, its struggles highlight investor concerns over companies' financial disclosures.

Fitch Ratings downgraded Fantasia to "CCC-" on Monday, a move that points to default as a possibility.

The ratings agency added in a statement that although media reports said Fantasia missed an earlier payment to bondholders, the bond "does not appear to have been disclosed in the company's financial reports".

"We believe the existence of these bonds means that the company's liquidity situation could be tighter than we previously expected.

"Furthermore, this incident casts doubt on the transparency of the company's financial disclosures," Fitch added.

Separately, S&amp;P Global Ratings has downgraded another Chinese property firm -- Sinic Holdings -- saying its "debt-servicing ability has almost been depleted".

Sinic has been unable to service interest repayments, which could result in "accelerating repayments on Sinic's other debt obligations", S&amp;P said on Monday.

Fitch downgraded Sinic from "CCC" to "C" on Tuesday, reflecting its view that "a default-like process has begun" for the company.

The boss of Shanghai-based Sinic hit the headlines last month when he lost more than a billion dollars in a market meltdown linked to fears about Evergrande.

Zhang Yuanlin saw his net worth drop from $1.3 billion to $250.7 million on September 20, according to Forbes, when his firm was forced to halt trading in Hong Kong following an 87 percent slump in its share price.

China's real-estate sector has been under tightened scrutiny in recent months, with regulators announcing caps for three different debt ratios in a scheme dubbed "three red lines" last year.

Beijing has stayed silent on the travails of Evergrande, but state media has trailed various responses in a nod to the mood towards a private company that grew on a debt binge in the boom years of Chinese real estate.

Another Chinese homebuilder has hit financial trouble after it missed payments on debt obligations, adding to worries over the country's property sector as embattled giant China Evergrande teeters on the brink of collapse.

Another Chinese homebuilder has hit financial trouble after it missed payments on debt obligations, adding to worries over the country's property sector as embattled giant China Evergrande teeters on the brink of collapse. Fears of contagion through the Chinese economy have grown as Evergrande, the most indebted of the country's private homebuilders, struggles with more than $300 billion in liabilities and heads towards a massive restructuring. Fantasia Holdings failed to repay a $205.7 million note Monday, the Shenzhen-based company said in a statement. This came as property management firm Country Garden Services Holdings added that a unit of Fantasia had missed repayment on a 700 million yuan ($108 million) loan, saying it was likely Fantasia would default. The news comes as investors await news from Evergrande after it suspended trading of its shares Monday pending an announcement on a "major transaction", with reports saying Hong Kong real estate firm Hopson Development Holdings planned to buy a 51 percent stake in its property services arm. While Fantasia is a smaller player in the market than Evergrande, its struggles highlight investor concerns over companies' financial disclosures. Fitch Ratings downgraded Fantasia to "CCC-" on Monday, a move that points to default as a possibility. The ratings agency added in a statement that although media reports said Fantasia missed an earlier payment to bondholders, the bond "does not appear to have been disclosed in the company's financial reports". "We believe the existence of these bonds means that the company's liquidity situation could be tighter than we previously expected. "Furthermore, this incident casts doubt on the transparency of the company's financial disclosures," Fitch added. Separately, S&P Global Ratings has downgraded another Chinese property firm -- Sinic Holdings -- saying its "debt-servicing ability has almost been depleted". Sinic has been unable to service interest repayments, which could result in "accelerating repayments on Sinic's other debt obligations", S&P said on Monday. Fitch downgraded Sinic from "CCC" to "C" on Tuesday, reflecting its view that "a default-like process has begun" for the company. The boss of Shanghai-based Sinic hit the headlines last month when he lost more than a billion dollars in a market meltdown linked to fears about Evergrande. Zhang Yuanlin saw his net worth drop from $1.3 billion to $250.7 million on September 20, according to Forbes, when his firm was forced to halt trading in Hong Kong following an 87 percent slump in its share price. China's real-estate sector has been under tightened scrutiny in recent months, with regulators announcing caps for three different debt ratios in a scheme dubbed "three red lines" last year. Beijing has stayed silent on the travails of Evergrande, but state media has trailed various responses in a nod to the mood towards a private company that grew on a debt binge in the boom years of Chinese real estate.

Chinese developer Fantasia fails to make debt payments

Trading in shares of debt-laden China Evergrande was suspended on Monday after it missed a key bond interest payment last week, its second offshore debt obligation in a week, with market watchers jittery as the group’s troubles unravel. Watch this report for more details.

Shares of China Evergrande and property services unit suspended: HKEX

In what can be another blow to reputation of China's debt-laden Evergrande, Hong Kong stock exchange said that it had suspended trading in its shares. The action has come days after some bondholders said the property developed had missed the second payment of interest on bonds. The Evergrande crisis is at the center of jitters in China's financial system.

Hong Kong stock exchange did not say why stock trading had been halted. It was unclear who had initiated the suspension.

Evergrande's liabilities make it the most indebted property firm in the world. The debts stretch into hundreds of billions of dollars. This makes it equal to 2 per cent of Chinese GDP. &nbsp;Initial worries have eased somewhat after China's central bank vowed to protect homebuyers' interests.

Shares in Evergrande have plunged 80% so far this year, while its property services unit has dropped 43% as the group scrambles to raise funds to pay its many lenders and suppliers.

In what can be another blow to reputation of China's debt-laden Evergrande, Hong Kong stock exchange said that it had suspended trading in its shares. The action has come days after some bondholders said the property developed had missed the second payment of interest on bonds.

In what can be another blow to reputation of China's debt-laden Evergrande, Hong Kong stock exchange said that it had suspended trading in its shares. The action has come days after some bondholders said the property developed had missed the second payment of interest on bonds. The Evergrande crisis is at the center of jitters in China's financial system. Hong Kong stock exchange did not say why stock trading had been halted. It was unclear who had initiated the suspension. Evergrande's liabilities make it the most indebted property firm in the world. The debts stretch into hundreds of billions of dollars. This makes it equal to 2 per cent of Chinese GDP. Initial worries have eased somewhat after China's central bank vowed to protect homebuyers' interests. Shares in Evergrande have plunged 80% so far this year, while its property services unit has dropped 43% as the group scrambles to raise funds to pay its many lenders and suppliers.

Hong Kong Stock Exchange halts trading of Evergrande shares

At least some of China Evergrande's offshore bondholders had not received a due coupon payment by the close of Asia business on Wednesday. Watch this report for more details.

China's Evergrande crisis: Offshore bond coupon payment to be missed

Cash-strapped China Evergrande Group left its offshore bondholders guessing whether it would pay interest on a bond coupon due Wednesday despite agreeing to settle debt with a Chinese bank in a $1.5 billion stake divestment deal. Watch this report for more details.

China’s Evergrande sells $1.5 billion bank stake amid crisis

Tencent Holdings` WeChat platform has blocked at least eight instant messaging groups used by people in China owed money by cash-strapped property giant China Evergrande Group, group members said on Wednesday.

The groups, of around 200 to 500 people each, had discussed members` claims and organised protests. Members said they were prevented from sending new messages to the groups starting from Tuesday morning.

The crisis at Evergrande, weighed down under $305 billion in debt and in the midst of a cash crunch, poses a challenge for the government. It wants to impose financial discipline but analysts say it is wary of a messy collapse that could fuel unrest by local investors, suppliers and homebuyers.

Angry homebuyers and retail investors launched protests in several cities in recent weeks, and many took to social media platforms like WeChat, the country`s most popular messaging app, to voice their grievances.

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Earlier this month, Reuters witnessed protesters being taken away outside Evergrande headquarters in Shenzhen, and similar scenes have been shared in WeChat groups.

On Wednesday, two WeChat users reported seeing the error message "limits have been placed on this group because it violates relevant rules and regulations". A screenshot seen separately by Reuters confirmed that wording.

Three other users said the groups had been deleted from their WeChat app. Another two users also said they could not access their groups. Tencent declined to comment. The Cyberspace Administration of China did not immediately respond to a request for comment.

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Two people who had been members of some of the groups said separately that they were visited by Chinese law enforcement on Sunday and asked to sign papers pledging not to join any gatherings or do anything illegal. They declined to be identified given the sensitivity of the matter.

China`s Ministry of Public Security did not immediately respond to a request for comment.

Evergrande`s woes, which include missing payment on a global bond coupon last week, have rattled global markets but received scant coverage in official Chinese media, and Beijing has said little publicly about the situation.

Chinese social media companies are subject to strict laws requiring them to censor content that "undermines social stability" or is critical of the central government, controls that have tightened under President Xi Jinping.

It was unclear whether other Chinese social media platforms were also blocking Evergrande posts. On the Twitter-like Weibo, videos of unhappy creditors confronting Evergrande staff as well as complaints targeting the property developer could be seen on Wednesday.

Some WeChat users complained on Weibo that their Evergrande-related WeChat groups had been blocked.

Tencent Holdings` WeChat platform has blocked at least eight instant messaging groups used by people in China owed money by cash-strapped property giant China Evergrande Group, group members said on Wednesday.

Tencent Holdings` WeChat platform has blocked at least eight instant messaging groups used by people in China owed money by cash-strapped property giant China Evergrande Group, group members said on Wednesday. The groups, of around 200 to 500 people each, had discussed members` claims and organised protests. Members said they were prevented from sending new messages to the groups starting from Tuesday morning. The crisis at Evergrande, weighed down under $305 billion in debt and in the midst of a cash crunch, poses a challenge for the government. It wants to impose financial discipline but analysts say it is wary of a messy collapse that could fuel unrest by local investors, suppliers and homebuyers. Angry homebuyers and retail investors launched protests in several cities in recent weeks, and many took to social media platforms like WeChat, the country`s most popular messaging app, to voice their grievances. Also Read | Sri Lanka stops 'tainted' fertiliser import from China Earlier this month, Reuters witnessed protesters being taken away outside Evergrande headquarters in Shenzhen, and similar scenes have been shared in WeChat groups. On Wednesday, two WeChat users reported seeing the error message "limits have been placed on this group because it violates relevant rules and regulations". A screenshot seen separately by Reuters confirmed that wording. Three other users said the groups had been deleted from their WeChat app. Another two users also said they could not access their groups. Tencent declined to comment. The Cyberspace Administration of China did not immediately respond to a request for comment. Also Read | China 'Belt and road' drive: $385 billion trap and counting Two people who had been members of some of the groups said separately that they were visited by Chinese law enforcement on Sunday and asked to sign papers pledging not to join any gatherings or do anything illegal. They declined to be identified given the sensitivity of the matter. China`s Ministry of Public Security did not immediately respond to a request for comment. Evergrande`s woes, which include missing payment on a global bond coupon last week, have rattled global markets but received scant coverage in official Chinese media, and Beijing has said little publicly about the situation. Chinese social media companies are subject to strict laws requiring them to censor content that "undermines social stability" or is critical of the central government, controls that have tightened under President Xi Jinping. It was unclear whether other Chinese social media platforms were also blocking Evergrande posts. On the Twitter-like Weibo, videos of unhappy creditors confronting Evergrande staff as well as complaints targeting the property developer could be seen on Wednesday. Some WeChat users complained on Weibo that their Evergrande-related WeChat groups had been blocked.

WeChat blocks China Evergrande messaging groups, some users say

Beijing is prodding government-owned firms and state-backed property developers such as China Vanke Co Ltd (000002.SZ) to purchase some of embattled China Evergrande Group's (3333.HK) assets, people with knowledge of the matter said.

China asking state-backed firms to pick up Evergrande assets

Evergrande, the embattled Chinese real estate developer, said Wednesday that it was selling a stake it held in Shengjing Bank for about $1.5 billion, with the proceeds going toward paying down its debts.

A Chinese state-owned enterprise is buying the stake, worth around 20% in the commercial bank.

The move comes as Evergrande, which has unpaid bills totaling more than $300 billion, missed an interest payment on a US&nbsp;dollar bond last week. It has another $45 million payment on an international bond due Wednesday.

Evergrande has yet to address either payment publicly, and it has a 30-day grace period before a missed payment results in a default. Investors have been looking for signs that the Chinese government might step in to bail out the company.

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In its filing announcing the Shengjing Bank stake sale, which was signed on Tuesday, Evergrande said that its own liquidity problems had “adversely affected” the bank. Transferring ownership of the stake would help stabilize the bank, which would support the value of a stake of nearly 15% that Evergrande will keep.

And as a condition of the sale, Shengjing Bank said that Evergrande would use all of the proceeds to settle its “relevant financial liabilities” with the bank. This flow of funds and the involvement of state-owned entities in the deal may indicate China’s willingness to limit the damage from Evergrande’s cash crunch.

“We believe the Chinese government is involved in some capacity to help resolve the situation,” Adrian Cheng, a director at Fitch Ratings, said on a call with reporters on Wednesday. The credit ratings agency downgraded Evergrande and some of its subsidiaries to “C” on Tuesday, which means that “a default or default-like process has begun.”

“We believe they are prioritizing homebuyers and ensuring the products get delivered,” Cheng said. Repaying suppliers would come next, followed by domestic bondholders and foreign bondholders.

Evergrande, the embattled Chinese real estate developer, said Wednesday that it was selling a stake it held in Shengjing Bank for about $1.5 billion, with the proceeds going toward paying down its debts.

Evergrande, the embattled Chinese real estate developer, said Wednesday that it was selling a stake it held in Shengjing Bank for about $1.5 billion, with the proceeds going toward paying down its debts. A Chinese state-owned enterprise is buying the stake, worth around 20% in the commercial bank. The move comes as Evergrande, which has unpaid bills totaling more than $300 billion, missed an interest payment on a US dollar bond last week. It has another $45 million payment on an international bond due Wednesday. Evergrande has yet to address either payment publicly, and it has a 30-day grace period before a missed payment results in a default. Investors have been looking for signs that the Chinese government might step in to bail out the company. ALSO READ | Republicans at odds over infrastructure bill as vote approaches In its filing announcing the Shengjing Bank stake sale, which was signed on Tuesday, Evergrande said that its own liquidity problems had “adversely affected” the bank. Transferring ownership of the stake would help stabilize the bank, which would support the value of a stake of nearly 15% that Evergrande will keep. And as a condition of the sale, Shengjing Bank said that Evergrande would use all of the proceeds to settle its “relevant financial liabilities” with the bank. This flow of funds and the involvement of state-owned entities in the deal may indicate China’s willingness to limit the damage from Evergrande’s cash crunch. “We believe the Chinese government is involved in some capacity to help resolve the situation,” Adrian Cheng, a director at Fitch Ratings, said on a call with reporters on Wednesday. The credit ratings agency downgraded Evergrande and some of its subsidiaries to “C” on Tuesday, which means that “a default or default-like process has begun.” “We believe they are prioritizing homebuyers and ensuring the products get delivered,” Cheng said. Repaying suppliers would come next, followed by domestic bondholders and foreign bondholders.

Evergrande sells $1.5 billion stake in a bank to help settle debts

Last week, Evergrande missed a payment deadline. Communist Party officials have been ordered to "look out for budding protests" & "monitor aggrieved home buyers". Palki Sharma tells you how China is trying to hide a financial crisis.

Gravitas US Edition: China's Communist Party orders a crackdown to "hide" a financial crisis

China Evergrande slipped toward a kind of limbo on Friday as time ticked away on an interest payment deadline which global markets are watching for signs of default, leaving investors on tenterhooks over the embattled property giant’s fate.

China Evergrande bondholders in limbo over debt resolution

China Evergrande Group (3333. HK) dollar bondholders were still waiting for information about a key interest payment due Thursday that has kept global investors on tenterhooks, but the property developer was instead expected to provide more clarity in the coming month, a source familiar with the situation said. Watch this report for more details.

Evergrande bondholders seek clarity on payments | World Business Watch

Global investors are in guessing mode as a crucial date for a key interest payment passed without a comment from indebted property company Evergrande. There are fears that China will let bondholders abroad swallow large losses. The liquidity crisis at the world's most indebted company is deepening.

Evergrande owes $305 billion, has run short of cash and investors are worried a collapse could pose systemic risks to China's financial system and reverberate around the world.

Deadline for payment of interest of USD 305 billion was Thursday (September 24). Bondholders have not been paid or heard from the company, reported Reuters quoting two people familiar with the situation.

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The firm has a 30-day grace period and will default if that passes without payment.

Evergrande's silence on the dollar bond interest payment and another $47.5 million payment due next week contrasts with its treatment of its domestic investors. The company this week resolved one coupon payment on a domestic bond.

"This is part of the tactics of any sovereign driven restructuring process - keeping people in the dark or guessing," said Karl Clowry, a partner at Addleshaw Goddard in London.

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"The view from Beijing is offshore bondholders are largely Western institutions and so can justifiably be given different treatment. I think people think it's still a falling knife."

China's central bank again injected cash into the banking system on Friday, seen as a signal of support for markets. But authorities have been silent on Evergrande's predicament and China's state media has offered no clues on a rescue package.

Also Read | <a href="https://www.wionews.com/opinions-blogs/chinas-evergrande-crisis-a-global-financial-crisis-in-the-making-414669">China's Evergrande crisis: A global financial crisis in the making</a>

"These are periods of eerie silence as no-one wants to take massive risks at this stage," said Howe Chung Wan, head of Asia fixed income at Principal Global Investors in Singapore.

"There's no precedent to this at the size of Evergrande ... we have to see in the next ten days or so, before China goes into holiday, how this is going to play out."

Evergrande appointed financial advisers and warned of default last week and world markets fell heavily on Monday amid fears of contagion, though they have since stabilised.

(With inputs from agencies)

Global investors are in guessing mode as a crucial date for a key interest payment passed without a comment from indebted property company Evergrande. There are fears that China will let bondholders abroad swallow large losses.

Global investors are in guessing mode as a crucial date for a key interest payment passed without a comment from indebted property company Evergrande. There are fears that China will let bondholders abroad swallow large losses. The liquidity crisis at the world's most indebted company is deepening. Evergrande owes $305 billion, has run short of cash and investors are worried a collapse could pose systemic risks to China's financial system and reverberate around the world. Deadline for payment of interest of USD 305 billion was Thursday (September 24). Bondholders have not been paid or heard from the company, reported Reuters quoting two people familiar with the situation. Also Read | Evergrande chairman reassures investors, shares surge The firm has a 30-day grace period and will default if that passes without payment. Evergrande's silence on the dollar bond interest payment and another $47.5 million payment due next week contrasts with its treatment of its domestic investors. The company this week resolved one coupon payment on a domestic bond. "This is part of the tactics of any sovereign driven restructuring process - keeping people in the dark or guessing," said Karl Clowry, a partner at Addleshaw Goddard in London. Also Read | China's crisis-hit Evergrande says deal has been reached to avoid default "The view from Beijing is offshore bondholders are largely Western institutions and so can justifiably be given different treatment. I think people think it's still a falling knife." China's central bank again injected cash into the banking system on Friday, seen as a signal of support for markets. But authorities have been silent on Evergrande's predicament and China's state media has offered no clues on a rescue package. Also Read | China's Evergrande crisis: A global financial crisis in the making "These are periods of eerie silence as no-one wants to take massive risks at this stage," said Howe Chung Wan, head of Asia fixed income at Principal Global Investors in Singapore. "There's no precedent to this at the size of Evergrande ... we have to see in the next ten days or so, before China goes into holiday, how this is going to play out." Evergrande appointed financial advisers and warned of default last week and world markets fell heavily on Monday amid fears of contagion, though they have since stabilised. (With inputs from agencies)

Evergrande investors in dark as no news on interest payment emerges

Just as Thursday deadline for a dollar-bond coupon loomed large for indebted Chinese property giant Evergrande, its chairman Hui Ka Yan sought to assure investors that the firm would make it a top priority for them to be able to redeem their products.

Hui Ka Yan, the chairman, said that the company was striving to ensure quality delivery of properties and stressed the importance to resume construction on developments where building had been halted

The assurance had a positive impact and Evergrande's shares jumped as much as 32 per cent. This year, when the threat of Evergrande defaulting on its interest payments loomed large, the company's shares have plunged around 85 per cent.

The bounce in the shares was also a reaction to Wednesday's news that an Evergrande unit had <a href="https://www.wionews.com/world/chinas-crisis-hit-evergrande-says-deal-has-been-reached-to-avoid-default-414778">resolved a coupon payment with creditors</a>, although this was just one of the hurdles the company faces as it labours under a $305 billion mountain of debt.

Also Read | <a href="https://www.wionews.com/opinions-blogs/chinas-evergrande-crisis-a-global-financial-crisis-in-the-making-414669">China's Evergrande crisis: A global financial crisis in the making</a>

The group's electric vehicle and property services units climbed around 3% and 9%, respectively.

Reuters quoted a source who said that Evergrande chairman's latest comments were "clearly aimed at stabilising markets but there seems to be not much information for bond holders," said a source familiar with the situation. "There's no clear plan as yet but we expect the debt to be restructured at some point," said the source, who declined to be identified as he was not authorised to speak to the media.&nbsp;

Global investors have been on tenterhooks as the deadline looms, worried that the company's malaise could spread beyond the country’s property sector and pose systemic risks to China's financial system.

Also Read | <a href="https://www.wionews.com/world/chinas-crisis-hit-evergrande-says-deal-has-been-reached-to-avoid-default-414778">China's crisis-hit Evergrande says deal has been reached to avoid default</a>

Chinese Estates Holdings, the second-biggest shareholder of Evergrande, said on Thursday it had sold $32 million worth of its Evergrande stake and planned to exit the holding completely.

On Wednesday, global markets reacted with relief when the People's Bank of China's injected 90 billion yuan ($13.9 billion) into the banking system and an Evergrande unit said it had "resolved" a coupon payment on an onshore bond.

Also Read | <a href="https://www.wionews.com/business-economy/us-stocks-slide-over-fears-of-china-property-giant-evergrandes-collapse-414580">US stocks slide over fears of China property giant Evergrande's collapse</a>

But it faces $83.5 million in dollar-bond interest payments due on Thursday on a $2 billion offshore bond. And more payments are coming due next week, with a $47.5 million dollar-bond interest payment due.

($1 = 6.4583 Chinese yuan renminbi)

(With inputs from agencies)

Just as Thursday deadline for a dollar-bond coupon loomed large for indebted Chinese property giant Evergrande, its chairman Hui Ka Yan sought to assure investors that the firm would make it a top priority for them to be able to redeem their products.

Just as Thursday deadline for a dollar-bond coupon loomed large for indebted Chinese property giant Evergrande, its chairman Hui Ka Yan sought to assure investors that the firm would make it a top priority for them to be able to redeem their products. Hui Ka Yan, the chairman, said that the company was striving to ensure quality delivery of properties and stressed the importance to resume construction on developments where building had been halted The assurance had a positive impact and Evergrande's shares jumped as much as 32 per cent. This year, when the threat of Evergrande defaulting on its interest payments loomed large, the company's shares have plunged around 85 per cent. The bounce in the shares was also a reaction to Wednesday's news that an Evergrande unit had resolved a coupon payment with creditors, although this was just one of the hurdles the company faces as it labours under a $305 billion mountain of debt. Also Read | China's Evergrande crisis: A global financial crisis in the making The group's electric vehicle and property services units climbed around 3% and 9%, respectively. Reuters quoted a source who said that Evergrande chairman's latest comments were "clearly aimed at stabilising markets but there seems to be not much information for bond holders," said a source familiar with the situation. "There's no clear plan as yet but we expect the debt to be restructured at some point," said the source, who declined to be identified as he was not authorised to speak to the media. Global investors have been on tenterhooks as the deadline looms, worried that the company's malaise could spread beyond the country’s property sector and pose systemic risks to China's financial system. Also Read | China's crisis-hit Evergrande says deal has been reached to avoid default Chinese Estates Holdings, the second-biggest shareholder of Evergrande, said on Thursday it had sold $32 million worth of its Evergrande stake and planned to exit the holding completely. On Wednesday, global markets reacted with relief when the People's Bank of China's injected 90 billion yuan ($13.9 billion) into the banking system and an Evergrande unit said it had "resolved" a coupon payment on an onshore bond. Also Read | US stocks slide over fears of China property giant Evergrande's collapse But it faces $83.5 million in dollar-bond interest payments due on Thursday on a $2 billion offshore bond. And more payments are coming due next week, with a $47.5 million dollar-bond interest payment due. ($1 = 6.4583 Chinese yuan renminbi) (With inputs from agencies)

Evergrande chairman reassures investors, shares surge

Troubled Chinese housing giant Evergrande said on Wednesday that it has agreed a deal with domestic bondholders that may allow it to avoid default on one of its interest payments.

Evergrande's property unit Hengda said in a statement to the Shenzen stock exchange that a plan to pay interest worth 232 million yuan (USD 35.9 million) had been negotiated. There was no mention of its repayments on interest for an offshore bond.

All eyes are on Evergrande's interest payment as there are fears that default would start a global crisis which would further weaken global economy battered due to coronavirus pandemic. Payment of interest is due on Thursday (September 23)

Also Read: <a href="https://www.wionews.com/opinions-blogs/chinas-evergrande-crisis-a-global-financial-crisis-in-the-making-414669">China's Evergrande crisis: A global financial crisis in the making</a>

Fears of Evergrande default <a href="https://www.wionews.com/business-economy/us-stocks-slide-over-fears-of-china-property-giant-evergrandes-collapse-414580">have sent&nbsp;markets tumbling</a> across the globe in last few days. On Tuesday, &nbsp;Dow lost &nbsp;1.8 per cent and the S&amp;P 500 index fell 1.7 per cent.

Evergrande is second-biggest property firm in China. It has more than USD 300 billion debt. Since real estate accounts for more than a quarter of China's GDP, is feared that Evergrande's collapse would spill over to global economy and start a fresh financial crisis. This is undesirable given the current state of recovery from Covid pandemic.

Also Read: <a href="https://www.wionews.com/world/elon-musk-jeff-bezos-others-lose-over-26-billion-wealth-due-to-evergrande-crisis-414672">Elon Musk, Jeff Bezos, others lose over $26 billion wealth due to Evergrande crisis</a>

The crisis has triggered rare protests outside the company's offices in several Chinese cities by investors and suppliers demanding their money, some of whom claim they are owed as much as $1 million.

Also Read: <a href="https://www.wionews.com/business-economy/us-stocks-slide-over-fears-of-china-property-giant-evergrandes-collapse-414580">US stocks slide over fears of China property giant Evergrande's collapse</a>

The crisis sent shares in the firm diving around 17 percent Monday, leaving it down around 90 percent from the start of the year.

Troubled Chinese housing giant Evergrande said on Wednesday that it has agreed a deal with domestic bondholders that may allow it to avoid default on one of its interest payments.

Troubled Chinese housing giant Evergrande said on Wednesday that it has agreed a deal with domestic bondholders that may allow it to avoid default on one of its interest payments. Evergrande's property unit Hengda said in a statement to the Shenzen stock exchange that a plan to pay interest worth 232 million yuan (USD 35.9 million) had been negotiated. There was no mention of its repayments on interest for an offshore bond. All eyes are on Evergrande's interest payment as there are fears that default would start a global crisis which would further weaken global economy battered due to coronavirus pandemic. Payment of interest is due on Thursday (September 23) Also Read: China's Evergrande crisis: A global financial crisis in the making Fears of Evergrande default have sent markets tumbling across the globe in last few days. On Tuesday, Dow lost 1.8 per cent and the S&P 500 index fell 1.7 per cent. Evergrande is second-biggest property firm in China. It has more than USD 300 billion debt. Since real estate accounts for more than a quarter of China's GDP, is feared that Evergrande's collapse would spill over to global economy and start a fresh financial crisis. This is undesirable given the current state of recovery from Covid pandemic. Also Read: Elon Musk, Jeff Bezos, others lose over $26 billion wealth due to Evergrande crisis The crisis has triggered rare protests outside the company's offices in several Chinese cities by investors and suppliers demanding their money, some of whom claim they are owed as much as $1 million. Also Read: US stocks slide over fears of China property giant Evergrande's collapse The crisis sent shares in the firm diving around 17 percent Monday, leaving it down around 90 percent from the start of the year.

China's crisis-hit Evergrande says deal has been reached to avoid default

US stocks sank on Monday over fears of collapse of &nbsp;Chinese property giant Evergrande.

The Dow lost &nbsp;1.8 per cent and the S&amp;P 500 index&nbsp;fell 1.7 per cent. The grim performance at the stock exchange was&nbsp;further fuelled by US inflation including surging COVID-19 infection and weakness in global recovery.

China's&nbsp;Evergrande Group is the country's second-biggest property developer. It is battling a liquidity crisis as it looks for funds.

There have been growing fears that it is set for a meltdown. However, the cash-strapped developer had told authorities earlier that it had begun repaying investors.

The group reportedly has over $300 billion in liabilities. Reports had claimed earlier that Evergrande had overdue debts even as it vowed to repay all of its matured wealth management products as soon as possible.

Meanwhile, stocks in Asia opened amid the turmoil caused by &nbsp;Evergrande. Hong Kong's Hang Seng Index saw a marginal gain of &nbsp;0.2 per cent after it had plunged three per cent on Monday.

The stock market in Tokyo lost two per cent in early trade as markets in the Philippines and Indonesia also fell on Tuesday morning.

(With inputs from Agencies)

US stocks sank on Monday over fears of collapse of Chinese property giant Evergrande. The Dow lost 1.8 per cent and the S&P 500 index fell 1.7 per cent. The grim performance at the stock exchange was further fuelled by US inflation including surging COVID-19 infection and weakness in global recovery.

US stocks sank on Monday over fears of collapse of Chinese property giant Evergrande. The Dow lost 1.8 per cent and the S&P 500 index fell 1.7 per cent. The grim performance at the stock exchange was further fuelled by US inflation including surging COVID-19 infection and weakness in global recovery. China's Evergrande Group is the country's second-biggest property developer. It is battling a liquidity crisis as it looks for funds. There have been growing fears that it is set for a meltdown. However, the cash-strapped developer had told authorities earlier that it had begun repaying investors. The group reportedly has over $300 billion in liabilities. Reports had claimed earlier that Evergrande had overdue debts even as it vowed to repay all of its matured wealth management products as soon as possible. Meanwhile, stocks in Asia opened amid the turmoil caused by Evergrande. Hong Kong's Hang Seng Index saw a marginal gain of 0.2 per cent after it had plunged three per cent on Monday. The stock market in Tokyo lost two per cent in early trade as markets in the Philippines and Indonesia also fell on Tuesday morning. (With inputs from Agencies)

US stocks slide over fears of China property giant Evergrande's collapse

Evergrande, the biggest real estate developer in China, which is staring at bankruptcy, hit the world’s biggest fortunes, with the richest people losing billions of dollars.

Evergrande, the biggest real estate developer in China, which is staring at bankruptcy, hit the world’s biggest fortunes, with the richest people losing billions of dollars. The world’s top 10 richest people, such as Elon Musk, Jeff Bezos, Bill Gates, Mark Zuckerberg, Warren Buffett, and others lost over $26 billion. China's Evergrande Group is the country's second-biggest property developer. It is battling a liquidity crisis as it looks for funds. There have been growing fears that it is set for a meltdown. However, the cash-strapped developer had told authorities earlier that it had begun repaying investors. The group reportedly has over $300 billion in liabilities. Reports had claimed earlier that Evergrande had overdue debts even as it vowed to repay all of its matured wealth management products as soon as possible. Also read | US stocks slide over fears of China property giant Evergrande's collapse Musk saw his net worth falling by $7.2 billion to $198 billion, according to the Bloomberg Billionaires Index. Amazon.com Inc. founder Jeff Bezos lost $5.6 billion, with a net worth of $194 billion. In comparison, the S&P 500 index tanked 1.7 per cent to $4,357.73, posting its worst daily performance since May this year. Monday’s sell-off dragged the S&P 500 index 4.3 per cent down from its 52-week high of $4,545.85. Meanwhile, stocks in Asia opened amid the turmoil caused by Evergrande. Hong Kong's Hang Seng Index saw a marginal gain of 0.2 per cent after it had plunged three per cent on Monday. The stock market in Tokyo lost two per cent in early trade as markets in the Philippines and Indonesia also fell on Tuesday morning.

Elon Musk, Jeff Bezos, others lose over $26 billion wealth due to Evergrande crisis

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