Shares of Chinese developer Evergrande soared in price by 70% – Kommersant
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Today, September 6, quotes from troubled Chinese developer Evergrande jumped in value by 71.5%, after another troubled Chinese developer, Country Garden, smog avoid default by paying coupon yield on dollar bonds. Shares of other Chinese developers, Country Garden Holdings and Logan Group, also rose by 26% and 28%, respectively. As a result, the entire index of Chinese companies in the real estate sector Hang Seng Mainland Property Index rose by 4% today.
Recall that Country Garden may default warned last week. The company missed a $22.5 million payment due on August 7. The grace period for income payments ended on September 5–6, after which a technical default could occur. However, Country Garden managed to find funds to pay off creditors. Country Garden’s total debt is about $187 billion. The company has seven more payments due in September on loans in dollars, yuan, Thai baht and Malaysian ringgits.
Evergrande’s debt is even higher, at $328 billion. Last year, the company suffered a technical default on its debt obligations and then went through a painful restructuring. At the end of August, trading in Evergrande shares resumed after a 17-month break, and on the first day of trading, they fell in price by 80%.
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