Evergrande face next overdue debt payment
Concerns continue to mount about a deepening liquidity crisis in the Chinese property sector ahead of a deadline for cash-strapped Evergrande to make an offshore bond coupon payment.
Evergrande, the world's most indebted developer, has been stumbling from deadline to deadline in recent weeks as it grapples with more than $US300 billion ($A407 billion) in liabilities, $US19 billion of which are international market bonds.
The company has not defaulted on any of its offshore debt obligations, but another overdue $US148 million payment must be made on Wednesday and it has coupon payments totalling more than $US255 million on its June 2023 and 2025 bonds on December 28.
Beijing has been prodding government-owned firms and state-backed property developers to purchase some of Evergrande's assets to try to control the fall.
Despite the stifling debt woes of Evergrande, its electric vehicles unit is pushing ahead with its business plan. The unit is seeking Chinese regulatory approval to sell its inaugural Hengchi 5 sport-utility vehicles.
China Evergrande New Energy Vehicle Group Ltd plans to sell $US64 million worth of shares to fund production of new energy cars.
Shares in Evergrande were little changed from the previous close on Wednesday morning, while the EV unit was up 1.4 per cent.
Worries over the potential fallout from Evergrande worried China's property sector on Tuesday, slamming the bonds of real estate companies amid worries the crisis could spread to other markets.
The slide in bond prices came just hours after the US Federal Reserve warned China's troubled property sector could pose global risks.
China's property woes rattled global markets in September and October.
There was a brief lull in mid-October after Beijing tried to reassure investors the crisis would not be allowed to spiral out of control, but concerns have resurfaced.
Founded in Guangzhou in 1996, Evergrande epitomised a freewheeling era of borrowing and building.
But that business model has been scuttled by hundreds of new rules designed to curb developers and promote affordable housing.
Any prospect of Evergrande's demise raises questions over more than 1300 real estate projects it has in some 280 cities.
Bank exposure to developers is also extensive.
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