Lordy, already! A few months of three red lines policy and the titans totter. China’s largest property developer, Evergrande, is increasingly on the nose for credit markets:
And equity markets:
- Regulators have instructed Evergrande counterparties to stress test their exposures.
- Evergrande denies any wrongdoing in its partly-owned Shengjing Bank Co, as well as heavy discounting for empty apartments.
- Evergrande has $50bn in debt, 80% of which is due in the next year. Sheesh.
- $20bn is dollar bonds.
- It is behind all “three red lines” for develeraging imposed earlier this year.
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