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

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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.

EUR/USD sticks to positive bias above 1.1800 as trade jitters undermine USD

The EUR/USD pair builds on the previous day's modest gains and attracts some buyers for the second straight day on Thursday amid a softer US Dollar. Spot prices, however, lack bullish conviction and trade around the 1.1815-1.1820 area during the Asian session, up 0.10% for the day.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold retains positive bias amid sustained safe-haven demand, softer USD

Gold attracts some buyers for the second straight day as trade jitters and geopolitical tensions ahead of the US-Iran nuclear talks underpin demand for safe-haven assets. Apart from this, a softer US Dollar further supports the bullion, though the underlying bullish sentiment could cap gains. Bulls might also opt to wait for acceptance above the $5,200 mark before positioning for any meaningful appreciating move.

AUD/USD rises toward three-year highs on RBA rate hike bets

AUD/USD remains stronger for the third successive session, trading around 0.7120 during the Asian hours on Thursday. The pair advances toward its three-year high of 0.7147, last touched on February 12, as the Australian Dollar strengthens following hotter-than-expected inflation data from Australia, reinforcing expectations of further interest rate hikes by the Reserve Bank of Australia this year.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.