Evergrande infarction siezes heart of Chinese apartment ponzi

Wednesday, 28 July 2021

The doom loop devouring Evergrande dramatically accelerated yesterday after its failed special dividend gambit turned stock market crash:

Down 13.5% with bonds trading at half face value.
UBS put the boot into the stock as well. Having called the rout earlier this year, it doubled down and said the stock would halve again.
S&P piled in with a cut to Evergrande’s rating by another two notches even deeper into junk.
There is a full schedule of refinancing ahead with 70% of the company debt up for grabs in the next year.

Here is a snapshot of the sprawling firm:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.