ZeroHedge has a good wrap on yesterday’s very bad day for China’s rapidly expanding number of Evergrandes:
Two days after we reported that “China Junk Bond Yields Hit All Time High As Property Default Contagion Spreads”, the index of Chinese junk bond yields has hit a fresh all time high, rising above 21% on Thursday…
… as the contagion vortex in the Chinese property sector claimed yet another victim when Chinese property developer Kaisa Group Holdings – the 25th largest developer in the country by home sales – said on Thursday its finance unit had missed a payment on a wealth management product (WMP), adding to worries about a cash crunch at the debt-strapped company.
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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.
