Timeline: China Evergrande stares into the void as interest deadline passes

Chinese Estates Holdings

24/09/2021 16:46

NEW YORK, Sept 24 (Reuters) - A deadline passed on Thursday
for China Evergrande, the world’s most indebted property
company, to pay $83.5 million in interest on a dollar bond. With
$305 billion in liabilities, Evergrande is struggling to meet
debt obligations and global markets are watching for signs of
default. urn:newsml:reuters.com:*:nL1N2QQ02J
    Here is a timeline of this week's developments.
    
    MONDAY, SEPT. 20:
    Evergrande shares in Hong Kong hit lowest level since 2010.
Global equity markets wobble on contagion fears. The S&P 500
suffers its biggest one-day drop in four months.  urn:newsml:reuters.com:*:nL1N2QM1GW
    S&P Global Ratings says it does not expect Beijing to
provide any direct support to the company.  urn:newsml:reuters.com:*:nL4N2QN0EB
    The cost of insuring China against default rises to near
one-year high. Yuan currency comes under pressure.  urn:newsml:reuters.com:*:nL1N2QM03G
    
    TUESDAY, SEPT 21:
    The company will "walk out of its darkest moment" and resume
full-scale construction as soon as possible, the developer's
chairman says in a letter to staff.  urn:newsml:reuters.com:*:nL1N2QN05B
    Evergrande missed interest payments due Monday to at least
two of its largest bank creditors, Bloomberg reports. The missed
payments had been expected as China's housing ministry had said
the company would be unable to pay on time.  urn:newsml:reuters.com:*:nL1N2QN2Y6
    Fund giant BlackRock and investment banks HSBC and UBS have
been among the largest buyers of Evergrande’s debt, Morningstar
data shows.  urn:newsml:reuters.com:*:nL1N2QN1XR
    Bank of America cuts China growth forecast.  urn:newsml:reuters.com:*:nL1N2QN0N2
    
    WEDNESDAY, SEPT. 22:
    Evergrande holds an internal meeting and its chairman urges
executives to ensure the quality delivery of properties and
redemption of wealth management products.  urn:newsml:reuters.com:*:nL1N2QP01U
    Evergrande agrees to settle interest payments on a domestic
bond. The Chinese central bank injects cash into the banking
system.  urn:newsml:reuters.com:*:nL1N2QO1IT
    U.S. Federal Reserve Chair Jerome Powell says the Evergrande
debt problems seem particular to China and does not see a
parallel with the U.S. corporate sector.  urn:newsml:reuters.com:*:nL1N2QO2K3
    The Swiss central bank governor says it would be wrong to
dismiss the Evergrande situation as a small local problem.
 urn:newsml:reuters.com:*:nL8N2QP2B9
    
    THURSDAY, SEPT. 23:
    Chinese Estates Holdings  0127.HK , the second-biggest
shareholder of Evergrande, plans to exit its holding completely.
 urn:newsml:reuters.com:*:nL1N2QP02Q
    Wall Street Journal reports Chinese authorities asked local
governments to prepare for the potential downfall of Evergrande.
 urn:newsml:reuters.com:*:nL4N2QP1TG
    A handful of Chinese real estate developers have ratings
downgraded by agencies as concern swirls about their debt and
repayment abilities.  urn:newsml:reuters.com:*:nL4N2QP0VF   
    
    FRIDAY, SEPT 24: 
    A Thursday deadline for paying $83.5 million in interest of
a dollar bond passed without remark from Evergrande, and
bondholders had neither been paid nor heard from the company.
Evergrande has a 30-day grace period.
    China Evergrande's electric car unit warns that without a
strategic investment or the sale of assets it faces an uncertain
future with its ability to pay staff and suppliers and
mass-produce vehicles at risk.  urn:newsml:reuters.com:*:nL4N2QQ2WG
    Some Chinese banks, insurers and shadow banks stop offering
new credit to property developers.  urn:newsml:reuters.com:*:nL4N2QP3D3
    China's central bank again injects cash into the banking
system.  urn:newsml:reuters.com:*:nL1N2QQ02J
    
    

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
ANALYSIS-Evergrande woes to take toll on China property sale and
drive M&A     urn:newsml:reuters.com:*:nL4N2QP1ZU
Evergrande investors in limbo after payment deadline passes   
 urn:newsml:reuters.com:*:nL1N2QQ02J
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Writing by Nick Zieminski in New York; Editing by Nick Macfie)
 ((nick.zieminski@thomsonreuters.com;  +1 646.223.6162;))