Evergrande risks abate, company resumes property projects

Ross J Burland FXStreet

Reuters reported this weekend that China Evergrande Group has said on Sunday that it had resumed work on more than 10 projects in six cities including Shenzhen.

The property company made a statement that comes after it appeared to avert default with a last-minute bond coupon payment last week.

''Evergrande, deep in crisis with more than $300 billion in liabilities, has not disclosed how many of its 1,300 real estate projects across China it has had to halt work on.''

''The company said on Aug. 31 that some projects were suspended because of delays in payment to suppliers and contractors and it was negotiating to resume building.''

''On Sunday, it said in a post on its Wechat account that some of the projects it had resumed work on had entered the interior decoration stage while other buildings had recently finished construction.''

Market implications

AUD/USD has benefitted of late as the Evergrande risk abates. Evergrande added that its efforts to guarantee construction would shore up market confidence. Moreover, last week's move to pay $83.5 million in interest on a US dollar bond has bought Evergrande another week to wrestle with a debt crisis looming over the world's second-biggest economy.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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