Evergrande Group (3333 HK) (EGRNF) Stock News: Has Evergrande Group defaulted?

Evergrande Group is due to make a large bond coupon payment of C$150 million on Wednesday.
Sources tell Reuters that some bondholders have not received coupon payments.
A 30-day grace period expires Wednesday, which would mean a default.

Ivan Brian FXStreet

Evergrande Group (3333.HK) (EGRNF) is about to step back into the limelight on Wednesday as rumours swirl that it has defaulted on some bond payments. The stock caused a serious sell-off in global equity markets about a month ago, but investors banked on it being too big to fail and that China would step in to limit contagion effects. Well, that theory may need more examining today as Reuters reports that offshore debt may be about to be defaulted on.

Evergrande Group news

Evergrande Group was never out of trouble, but the company now looks to have defaulted on overseas bonds, which would be more of a serious hit to global financial markets and a stronger warning signal of contagion. Other property developers in China have been struggling to meet debt obligations as the sector looks to be in increasing trouble. China has staged high-level meetings to try and avert the crisis including possible backing from state companies. However, a default on overseas debt would be a much bigger hit reputationally and see investors' concerns elevated. Evergrande Group has about $300 billion in debt. Companies can miss debt repayments, but they have 30 days to catch up essentially. Once that 30 days is over then the company is said to have defaulted.

The US Federal Reserve on Tuesday already had raised concerns with the Chinese property sector as issues spread to other developers. Fantasia Holdings Group stock cratered by up to 50% on Wednesday as Fantasia said there is no guarantee it will be able to meet its financial obligations following its failure to meet a payment deadline on October 4.

Fantasia Holdings Group graph, daily

S&P downgraded Shimao Group holdings on Wednesday also. Kaisa Group (1638.HK) said last week it had missed a payment, and sources told Reuters on Tuesday that Kaisa had requested help to meet payments. Fitch downgraded Kaisa.

Evergrande Group daily chart

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD trims gains; back to 1.3450-ish

The persistent weakness hurting the Greenback lends support to the British Pound and the rest of the risk-linked assets, sending GBP/USD to new two-day tops past 1.3480 on Wednesday. Indeed, Cable advances for the second day in a row helped by the constant optimism around a potential US-Iran deal.

EUR/USD clings to gains near 1.1550

EUR/USD builds on Tuesday’s advance and confronts the area of multi-week highs in the 1.1550-1.1560 band on Wednesday. The continuation of the pair’s recovery comes once again on the back of the renewed selling pressure on the US Dollar, always in response to diminishing geopolitical tensions.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

Crypto Today: Bitcoin, Ethereum advance while XRP lags amid US-Iran deal optimism

Bitcoin (BTC) hovers near $64,000 at the time of writing on Wednesday, buoyed by a marginal improvement in crypto sentiment amid growing optimism that the United States (US) and Iran could potentially reach an agreement to open the Strait of Hormuz this week. Ethereum (ETH) mirrors Bitcoin’s neutral-to-bullish outlook, trading toward $1,900.

Taking out the lines in the sand

Good Day... And a Wonderful Wednesday to you! Well, just as I suspected, my beloved Cardinals' bats went silent last night in the Bronx, and they lost 0-2... The Yankees' bats were exactly a murderer's row, but they hit 2 homers and won. I said yesterday that the song : Just Once In My Life, could be the Cardinals' song after hitting 5 home runs the previous night!

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.