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China’s Evergrande misses payment deadlineChinese property...

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    China’s Evergrande misses payment deadline

    Chinese property developer Evergrande has inched closer to the potential default that investors fear, missing a payment deadline in one of the clearest indications yet that the company is in dire trouble.

    Evergrande owes $A 418 billion, has run short of cash, and investors are worried a collapse could pose systemic risks to China's financial system and reverberate around the world.

    A deadline for paying $83.5 million in bond interest passed without remark from Evergrande and bondholders had not been paid nor heard from the company.

    The firm is now in uncharted waters and enters a 30-day grace period. It will default if that passes without payment.

    "These are periods of eerie silence as no-one wants to take massive risks at this stage," said Howe Chung Wan, head of Asia fixed income at Principal Global Investors in Singapore.

    "There's no precedent to this at the size of Evergrande ... we have to see in the next ten days or so, before China goes into holiday, how this is going to play out."

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    The Wall Street Journal has cited unnamed officials as saying authorities had asked local governments to prepare for Evergrande's downfall.
    China's Evergrande misses payment deadline (riverineherald.com.au)
 
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