ANL 19.29 Decreased By ▼ -1.56 (-7.48%)
ASC 13.45 Decreased By ▼ -0.09 (-0.66%)
ASL 22.20 Decreased By ▼ -0.80 (-3.48%)
BOP 8.18 Decreased By ▼ -0.02 (-0.24%)
BYCO 7.55 Decreased By ▼ -0.26 (-3.33%)
FCCL 17.45 Decreased By ▼ -0.35 (-1.97%)
FFBL 22.10 Decreased By ▼ -0.65 (-2.86%)
FFL 15.20 Decreased By ▼ -0.30 (-1.94%)
FNEL 7.40 Increased By ▲ 0.05 (0.68%)
GGGL 17.00 Decreased By ▼ -0.83 (-4.66%)
GGL 39.30 Decreased By ▼ -0.71 (-1.77%)
HUMNL 5.76 Decreased By ▼ -0.26 (-4.32%)
JSCL 18.00 Decreased By ▼ -0.30 (-1.64%)
KAPCO 35.95 Decreased By ▼ -0.40 (-1.1%)
KEL 3.29 Decreased By ▼ -0.11 (-3.24%)
MDTL 2.50 Decreased By ▼ -0.15 (-5.66%)
MLCF 34.24 Decreased By ▼ -0.86 (-2.45%)
NETSOL 119.85 Decreased By ▼ -9.55 (-7.38%)
PACE 4.94 Increased By ▲ 0.19 (4%)
PAEL 26.53 Decreased By ▼ -0.47 (-1.74%)
PIBTL 8.71 Decreased By ▼ -0.14 (-1.58%)
POWER 7.25 Decreased By ▼ -0.20 (-2.68%)
PRL 16.97 Decreased By ▼ -0.18 (-1.05%)
PTC 9.65 Decreased By ▼ -0.36 (-3.6%)
SILK 1.50 No Change ▼ 0.00 (0%)
SNGP 45.10 Increased By ▲ 0.10 (0.22%)
TELE 17.48 Decreased By ▼ -1.41 (-7.46%)
TRG 161.00 Decreased By ▼ -1.70 (-1.04%)
UNITY 31.80 Decreased By ▼ -1.15 (-3.49%)
WTL 2.85 Decreased By ▼ -0.09 (-3.06%)
BR100 4,718 Decreased By ▼ -14.65 (-0.31%)
BR30 22,320 Decreased By ▼ -482.1 (-2.11%)
KSE100 45,074 Decreased By ▼ -223.36 (-0.49%)
KSE30 17,742 Decreased By ▼ -68.18 (-0.38%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,524
4224hr
Pakistan Cases
1,236,888
2,06024hr
4.58% positivity
Sindh
454,510
Punjab
427,583
Balochistan
32,837
Islamabad
104,913
KPK
172,766
Markets

China Evergrande bonds fall sharply on default worries, onshore bond temporarily suspended

  • Shenzhen-traded January 2023 bond were halted from trading temporarily in the morning, after falling more than 20% in early trade, the Shenzhen Stock Exchange said in a statement
09 Sep 2021

SHANGHAI/HONG KONG: Indebted China Evergrande Group's shares and bonds were under fresh pressure on Thursday after media reports that the company would suspend interest payments due on loans to two banks later this month and also all payments to its wealth management products.

Investors are factoring in an increasing likelihood of a default. Regulators have warned that Evergrande's 1.97 trillion yuan ($304.7 billion) of liabilities could spark broader risks to the country's financial system if not stabilised.

Shenzhen-traded January 2023 bond were halted from trading temporarily in the morning, after falling more than 20% in early trade, the Shenzhen Stock Exchange said in a statement.

China Evergrande bonds suspended as prices slump

Dollar bonds due November 2024 dropped 0.8 cents to trade at 23.558, while the Hong Kong-listed stock dropped over 10% to HK$3.32, the lowest since July 8, 2015.

Financial information provider REDD reported on Wednesday Evergrande informed two banks it will suspend the interest payment due Sept 21, pending further instruction about an extension plan.

Evergrande has also delayed payments to several trust firms, REDD said, and it might suspend all payment on its wealth management products starting Wednesday.

Evergrande declined to comment on the report.

The bond selloffs also followed a series of downgrades by rating agencies including Fitch, Moody's and China Chengxin International (CCXI) in recent days.

Fitch Ratings cut the ratings of Evergrande and two of its subsidiaries to "CC" on Wednesday, adding a default appears probable, due to tight liquidity, declining contracted sales, pressure to address delayed payments to suppliers and contractors, and limited progress on asset disposals.

Comments

Comments are closed.