Evergrande added that its efforts to secure construction would bolster market confidence and included several photos of workers on different projects, with the time and date superimposed. China’s second-largest real estate developer also promised prospective buyers last month that it would finish construction on their homes, saying that construction work on one of the world’s largest soccer stadiums, in the southern city of Guangzhou, was progressing as planned.
Evergrande’s woes have hit the entire $ 5 trillion Chinese real estate sector, which accounts for a quarter of the economy by some measures, with a series of announcements of defaults, downgrades and falling corporate bonds. The debt crisis is also being watched by global financial markets, which are concerned about a broader contagion but for now, the situation appears to be “under control.”
Avoid default
On Friday, China Evergrande Group appeared to avoid a default with a last minute payment of interest on a bond, gaining another week to deal with a debt crisis that threatens the world’s second-largest economy.
China’s second-largest real estate developer remitted $ 83.5 million to a trust account at Citibank on Thursday, the person with knowledge of the situation told Reuters, allowing it to pay interest on a dollar bond before the end of the period. of grace of October 23. This brought relief to investors and regulators concerned about the repercussions on world markets, and will add to the guarantees offered by the Chinese authorities, who have said that creditors will be protected.
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