Chinese property bonds remained firm on Tuesday after two major developers made coupon payments, though the market remained focused on the potential for default by China Evergrande Group this week.
The liquidity crisis at Evergrande, China's No. 2 developer, which has $300 billion in debt and has missed a series in bond payments, has roiled global markets. High-yield bonds issued by Chinese property developers have been especially hammered.
An Evergrande bond due March 23, 2022 will officially be in default if the company does not make good after a 30-day grace period for a missed coupon payment that had been due on Sept. 23. Bonds from Chinese developers that gained on Tuesday included Modern Land's 2022 bonds which bounced over 8% to 40.250 cents on the dollar, while Central China Real Estate's 2024 bonds climbed over 5% to 44.843 cents.defaulted on $246 million in bonds as expected. It had warned of the default last week, saying it did not have sufficient financial resources.Sign up for our newsletter
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