Chinese regulators tell Evergrande to avoid near-term dollar bond default

Dhwani Mehta FXStreet

On the latest developments around the Evergrande story, the Chinese regulators have reportedly issued a broad set of instructions to the indebted China Evergrande, telling the company to avoid near-term dollar bond default.

China has said to have told the company to focus on completing unfinished properties and repaying individual investors.

Note that Evergrande is due its payment on the USD83 million offshore coupon, which if missed out on, the company will still have a 30-day grace period before this is registered as a default.

Market reaction

The risk sentiment got a further boost on the above headlines, with the S&P 500 futures rising 0.77% while AUD/USD saw a quick jump towards 0.7300.

The US dollar index keeps falling, now losing 0.33% on the day to trade at 93.15.

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.

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