Even as fate of China Evergrande remains unclear, sector suffers
Al Jazeera
A possible collapse of one of China’s biggest borrowers has led to worries about contagion risks to the property sector.
Growing worries about defaults at Chinese property developers have sapped investor sentiment, amid fresh credit rating downgrades and uncertainty about the fate of China Evergrande Group as it scrambles to raise cash by selling assets.
Evergrande is facing one of the country’s largest-ever debt restructurings as it grapples with more than $300bn of debt. The company last month missed making coupon payments on two dollar bond tranches.
The possible collapse of one of China’s biggest borrowers has triggered worries about contagion risks to the property sector in the world’s second-largest economy, as its debt-laden peers are hit with rating downgrades on looming defaults.
