China's Evergrande Chairman: Top priority is to help its wealth investors redeem their products
“The top priority is to help its wealth investors redeem their products,” the Chairman of troubled China Evergrande Group, Hui Ka Yan, said in a statement on Thursday.
Additional comments
“Firm will try its best to resume work and production.”
“Urge company executives to ensure quality delivery of properties.”
Separately, it is being reported that Chinese estates (Evergrande’s second-largest holder) sold 108.9 million Evergrande shares at a HK$9.5 billion loss.
Meanwhile, analysts at ING bank note that even though Evergrande misses out its payment on the USD83 million offshore coupon, the company still has a 30-day grace period before this is registered as a default.
“Our guess is that Evergrande will make full use of that window to buy time,” ING added.
Read: China government set to take control of Evergrande in an imminent deal – Asia Markets
Market reaction
With Hong Kong markets returning on Thursday, China Evergrande shares have shot to the moon, up 25% so far, leading to the stabilization in the Mainland China equities. Hong Kong’s Hang Seng is up 1.63%, at the time of writing.
Despite the Fed’s tapering timing announcement, the optimism around Evergrande is driving markets, underpinning the broader risk sentiment. The S&P 500 futures add 0.25% while AUD/USD remains slightly pressured after Fed Chair Jerome Powell boosts the US dollar.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
