Evergrande Warns of Looming Cash Crunch, Spooking Investors
- Developer may need to pay $19 billion to investors by January
- Shares drop second day, domestic bonds slump to record low
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The world’s most indebted developer has warned Chinese officials it faces a potential default that could roil the nation’s $50 trillion financial system unless regulators approve the company’s long-delayed stock exchange listing. Shares and bonds fell in volatile trading.
China Evergrande Group mapped out the scenario in an Aug. 24 letter to the Guangdong government seen by Bloomberg, in which the company sought support for a restructuring proposal needed to secure the listing and avert a cash crunch.