A single crypto regulator to appear in the EU Hotels in Maldives and Thailand accept crypto payments PayPal added bitcoin support to its mobile app Corporations invested more than $6 billion in crypto industry in the last 10 months DeFi-platform Velodrome accuses crypto sleuth of stealing $350k S&P Global dropped Coinbase rating to a speculative level BitGo will seek $100 million for Galaxy Digital refusal to acquire crypto platform Brazilian crypto exchange blocked customer accounts and fired staff Celsius Network’s debts is more his assets for $2,8 billion

China Evergrande Group: possible collapse of China's largest developer and why markets and investors are worried

China Evergrande Group: possible collapse of China's largest developer and why markets and investors are worried

China Evergrande Group once again failed to meet deadlines for bond interest payments. As reported in a press release, one of the investors, Deutsche Markt Screening Agentur GmbH (DMSA), is preparing bankruptcy proceedings.

On 10 November, interest payments to international investors worth over $148 million on 2022, 2023, and 2024 bonds expired without being paid.

Consequently, DMSA has initiated bankruptcy proceedings against Evergrande, and in its press release, appeals to all other investors to join the bankruptcy process.

In total, China's second-largest property developer is reeling under more than $300bn in liabilities.

According to Reuters, such a payment failure would mean the developer's official default and would entail a cross-default on other Evergrande dollar-denominated bonds.

As a reminder, two other Chinese developers are questioning their solvency. Fantasia Holdings has also failed to meet its $205.7m bond repayment deadline, while Sinic Holdings is at high risk of defaulting on its $246m bonds.

The stock and cryptocurrency market followed these events with a correction.

All this signals the impending debt crisis in China, which could harshly affect the global economy and all the markets worldwide.

0
Is there an error in the article?
To report