Predictions
- Beijing will look to coordinate orderly default and restructuring of Evergrande over coming months rather than offering significant bailout
- State bodies will step in to protect interests of certain groups, including home purchasers, as priority during default process
- Evergrande’s demise, combined with mounting energy crisis, will undermine GDP growth prospects over coming months
Event
China’s second-largest property developer, Evergrande, said it had reached a deal with creditors on 22 September to meet a domestic USD 35.9 million bond payment. However, it failed to meet an international bond payment worth USD 83.5 million that was due on 24 September.
Falanx Assynt is a global intelligence consultancy and leading provider of geopolitical, strategic and business risk analysis since 2003. Falanx Assynt is part of Falanx Group Ltd (LON:FLX) which, through its subsidiaries, provides cyber defence and intelligence services to blue chip and government clients worldwide.