China Evergrande shares fall after missing new coupon payments
The fate of Evergrande and other indebted Chinese property companies has gripped financial markets in recent months amid fears of knock-on effects.
Evergrande has more than $300 billion in liabilities and is scrambling to raise cash by selling assets and shares to repay suppliers and creditors.
Shares of China Evergrande Group have tumbled after the embattled real estate developer did not pay offshore coupons due earlier this week.
Evergrande, whose $19 billion in international bonds are in cross-default as of Thursday after missing a deadline to pay coupons earlier this month, had new coupon payments worth $255 million due on Tuesday for its June 2023 and 2025 notes.
Some bondholders holding the two bonds have not yet received the coupons, according to three sources with knowledge of the matter. Both the payments have a 30-day grace period.
By late Thursday morning, Evergrande's shares were down 10.30 percent on the Hong Kong stock exchange.
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No sign of payment
Bloomberg News reported earlier that the due date passed with no sign of payment by the property developer.
Evergrande's Thursday decline wiped out gains from earlier this week, when the market cheered the initial progress made by the firm in resuming construction work.
Company Chairman Hui Ka Yan vowed in a meeting on Sunday to deliver 39,000 units of properties in December, compared with fewer than 10,000 in each of the previous three months.
The fate of Evergrande and other indebted Chinese property companies has gripped financial markets in recent months amid fears of knock-on effects, with Beijing repeatedly seeking to reassure investors.
READ MORE: How the Chinese Evergrande crisis affects global markets
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