Evergrande has coupon payments totaling more than $ 255 million due December 28. It has come under pressure from its other national creditors and a suffocating funding constraint that has overshadowed hundreds of its residential projects.
Investors’ attention is now shifting to other cash-strapped developers that have a series of overseas payments that are due in the short term, including Kaisa Group.
Kaisa has the highest external debt of any Chinese developer after Evergrande and turned to her creditors for help this week. It has coupon payments totaling more than $ 59 million that are due Thursday and Friday, with 30-day grace periods for both.
It was not immediately known whether Kaisa, which became the first Chinese real estate company to default on a foreign bond in 2015, paid the tranche due Thursday. It has already skipped payments for some local wealth management products.
The firm did not immediately respond to a request for comment from Reuters.
Rough landing
Although the US Federal Reserve (Fed) warned this week that China’s troubled real estate sector could pose global risks, there is no clear indication whether Beijing will step in with a broader national plan to address the problem.
Regulators and government think tanks have also held meetings with developers in recent weeks, and the market expects some relaxation in credit and housing policies to avoid a hard landing in the sector.
These hopes and the Evergrande payment sparked a rally in Chinese real estate stocks, with the real estate class A share index up 9%, while Hong Kong’s Hang Seng Mainland Properties index closed 5.6 up. %.
Evergrande shares rose 6.8%, their highest in two weeks. The prices of Chinese developers’ bonds, which have been hit hard in recent weeks, soared further.
