Analysis: Investors brace for a great fall in China – Reuters
- Date: 17-Sep-2021
- Source: Reuters
- Sector:Financial Markets
- Country:Middle East
Analysis: Investors brace for a great fall in China – Reuters
LONDON, Sept 16 (Reuters) - International investors that have been piling into China in recent years are now bracing for one of its great falls as the troubles of over-indebted property giant China Evergrande come to a head.
The developer's (3333.HK) woes have been snowballing since May. Dwindling resources set against 2 trillion yuan ($305 billion) of liabilities have wiped nearly 80% off its stock and bond prices and an $80 million bond coupon payment now looms next week.
What happens then is unclear. Bankers have said it will most likely miss the payment and go into a kind of suspended animation where authorities step in and sell some of its assets, but it could easily get messy.