AMN/ WEB DESK
China’s property giant Evergrande, the world’s most indebted property developer with more than 300 billion dollars of liabilities has created fears of a systemic spillover to other parts of the Chinese economy. It is crumbling under this huge debt burden and has warned more than once that it could default.
Shares of Evergrande today plunged more than 15 per cent to their lowest in over a decade, as investors remain disappointed about its ability to pay interests on its bonds with a payment deadline this Thursday. The developer said yesterday that it has begun repaying investors in its wealth management products with real estate.
However, it is not of much use for the investors protesting at the firm’s Headquarter Shanzhen who are demanding for cash payments. Evergrande is due to pay 83.5 million dollars interest on 23rd of this month on the firm’s bonds which will be a key test of whether it will be able to tackle an impending default on its loans.