(Reuters) Shares of Evergrande hit a record low of HK$1.81 on Monday after falling up to 20% as the Chinese property developer said it might fail on maturing $82.5 million in debt repayments.
Evergrande said that it could not honor the $260 million demanded by creditors, even as the company faced an end of a 30-day grace period for $82.5 million dues.
Chinese authorities have promised to send officials at Evergrande’s request to the company to strengthen internal controls, risk management, and maintain operations.
Analysts say the intervention by Chinese regulators signals that the Evergrande situation is now in a managed debt-asset restructuring process. Morgan Stanley strategists warn that such a process would need collaboration between officials, onshore, and offshore creditors.
With over $300 billion in liabilities, the Evergrande crisis could now stifle the Chinese property sector, with the impacts also spreading across the globe. Market players, including the Chinese central bank, have said the property sector risks are within control.
3333: HKG is down -19.56%.
