Thursday, October 28, 2021
News for Retirees


Will China Save Evergrande? – WSJ

Share this…FacebookPinterestTwitterLinkedin Is China about to get a lesson in “Too Large to Fail?” Its second-largest real-estate developer, China Evergrande…

By Staff , in Retirement Accounts , at October 3, 2021



Is China about to get a lesson in “Too Large to Fail?” Its second-largest real-estate developer, China Evergrande Group , with 1,300 initiatives in 280 cities, has some $300 billion in liabilities. Evergrande owes buyers as many as 1.6 million unfinished flats, and so far as monetary debt, it owes $88.5 billion to banks and bondholders with $37 billion due inside a yr. It already missed an $83.5 million coupon fee on Sept. 23 and a $47.5 million fee final Wednesday. Evergrande does have a 30-day grace interval, so the clock is ticking towards a default.

Is Evergrande too massive? Is there an implicit assure for Chinese language real-estate investments much like the silly U.S. implicit assure of Fannie Mae and Freddie Mac debt? Nobody is aware of—but.



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