China Evergrande Shares Steady Despite Missing Offshore Bond Payments

Shares of China Evergrande Group steady despite missing bond payments


China Evergrande Group held steady on Wednesday and it has missed a payment on some offshore dollar bonds. Large fall in the share price was not anticipated due talks of managed debt restructuring.

A failure to make $82.5 million in interest payments due last month would trigger cross default on its roughly $19 billion of offshore bonds.

Policymakers recently relaxed regulations on source of funding for firms in the Chinese real estate sector which built positive sentiment around the indebted Chinese real estate sector.

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