On Sunday, governor Yi Gang from People's Bank of China (PBoC), China's central bank, said in a virtual meeting of the G30 that Beijing can 'contain' risks to China's financial system and economy stemmed from Evergrande's debt crisis despite admitting that it has caused 'a little bit of concern' for Beijing, according to Bloomberg.

'Even if it defaults, the implications for the markets in China would be limited or managed to the minimum.' 'It also reflects the weak recovery prospects for Evergrande's creditors if there is a default,' Moody’s said in a report.įighting for survival, Evergrande has been scrambling to raise funds by selling assets and offering discounts on apartment sales. Moody's has given Evergrande's debt a junk rating of Ca, the second-lowest category, reflecting 'its high liquidity and default risks because of its sizable debt maturities over the next six to 12 months'. Investors are watching closely whether Evergrande can make Saturday's deadline of $110 million in interest payments.Ī further $60 million interest payment was missed on September 29 and the grace period is also expiring on those debts. So how is this likely to play out in the coming days? What happens next if a formal default occurs? Will Evergrande formally default without a bailout? Loading. Once a darling of China's booming property sector, Evergande is now at risk of the country's largest-ever corporate default with more than $400 billion in debts, triggering financial woes in the world's second-biggest economy. The 30-day grace period for an offshore bond payment that the company initially missed on September 23 is going to expire at the end of this week.

After weeks of radio silence since being suspended from trading on the Hong Kong Stock Exchange, Chinese property giant Evergrande is about to face its day of reckoning.

Evergrande in default